Oct 1 (Reuters) - Element Fleet Management Corp EFN.TO :
* ANNOUNCES PLAN OF $300 MILLION EQUITY ISSUANCE AND ACHIEVE $150 MILLION OF RUN-RATE PROFITABILITY IMPROVEMENTS
* UNDERWRITERS AGREED TO BUY 45.5 MILLION COMMON SHARES AT A PRICE OF $6.60 PER SHARE
* INTENDS TO USE NET PROCEEDS FROM PUBLIC OFFERING TO REPAY EXISTING INDEBTEDNESS, GENERAL PURPOSES
* PLAN TO TRANSFORM ELEMENT'S FLEET BUSINESS
* ESTIMATES $150 MILLION IN RUN-RATE PRE-TAX OPERATING INCOME IMPROVEMENTS IN FLEET MANAGEMENT BUSINESS BY END OF 2020
* REPOSITIONING 19(TH) CAPITAL
* HAS REACHED AGREEMENT TO PURCHASE REMAINING EQUITY INTERESTS IN 19(TH) CAPITAL FROM ITS CURRENT JV PARTNERS FOR NOMINAL CONSIDERATION
* WILL CONTINUE TO SERVE 19TH CAPITAL'S CLIENT BASE WHILE WORKING TO DISPOSE OF IDLE TRUCK INVENTORY
* WILL CEASE FURTHER INVESTMENT IN NEW INVENTORY TO SUPPORT 19(TH) CAPITAL BUSINESS
* TO RECOGNIZE AFTER-TAX CHARGE OF ABOUT $360 MILLION IN Q3 REFLECTING WRITE DOWN OF CARRYING VALUE OF LEFTOVER INVESTMENT IN 19(TH) CAPITAL
* HAS ALSO REALIGNED ITS EXECUTIVE TEAM
* NAMES JIM HALLIDAY AS CHIEF OPERATING OFFICER
* PLANS TO REDUCE QUARTERLY COMMON SHARE DIVIDEND FROM $0.075 TO $0.045
* FOR 2020, ELEMENT IS EXPECTED TO GENERATE AFTER-TAX ADJUSTED OPERATING INCOME PER SHARE IN RANGE OF $0.90 TO $0.95