Mr. Marc St-Onge reports

ELEMENT ANNOUNCES INAUGURAL EQUITY RESIDUAL TRANSACTION, EXPANDING STRATEGIC FUNDING CAPABILITIES

Element Fleet Management Corp. has completed a $670-million asset-backed security (ABS) note offering and sale of corresponding equity residuals involving a portfolio of U.S. fleet lease receivables.

This is Element's inaugural ABS note issuance for its Chesapeake IV program under a discrete-pool collateral structure and the first time the company has sold equity residuals in connection with an ABS offering. It is also the first transaction completed under a three-year commitment for the purchase of equity residuals with funds managed by Blackstone Credit & Insurance and Canada Pension Plan Investment Board (CPP Investments), through subsidiaries of CPPIB Credit Investments Inc.

This strategic relationship and financing structure provide Element with additional off-balance sheet financing, reducing leverage while also diversifying and optimizing the company's financing profile. On a pro forma basis, the 76.4-per-cent debt-to-capital ratio that Element reported as of Q1 2026 would decline to 74.9 per cent following the transaction, thereby providing the company with additional balance sheet flexibility. By combining access to diverse sources of capital with its industry-leading fleet management expertise, Element remains well positioned to support client growth, drive long-term shareholder value and advance its strategy as a global leader in intelligent fleet and mobility solutions.

"Element is pleased to enter into this relationship with strong partners such as Blackstone and CPP Investments," said Marc St-Onge, senior vice-president and treasurer at Element. "This transaction represents an important evolution in our funding strategy, providing another tool to support the company's growth while enhancing our ability to serve clients. We appreciate the confidence that Blackstone and CPP Investments have shown in the strength of our lease portfolio and look forward to building on these relationships as we continue to diversify our sources of capital and execute on our long-term growth objectives."

"Element has built a high-quality fleet leasing platform supported by strong origination capabilities, long-standing client relationships and attractive underlying assets," said Aneek Mamik, head of financial services for asset-based finance at Blackstone Credit & Insurance. "We are pleased to support Element's growth with this expanded relationship and augment our investments, financing the real economy with hard asset-backed collateral."

"This investment aligns with our strategy of partnering with leading businesses and deploying long-term capital into high-quality asset-backed opportunities," said Paras Viras, managing director, Americas structured credit, at CPP Investments. "We are pleased to support Element's continued growth through this strategic relationship as we aim to generate attractive risk-adjusted returns for the CPP fund in the interests of CPP contributors and beneficiaries."

About Element Fleet Management Corp.

Element Fleet Management is the largest publicly traded pure play automotive fleet manager in the world and a global leader in intelligent fleet and mobility solutions. Guided by its purpose to move the world through intelligent mobility, Element Fleet Management helps clients manage the vehicles, data, technology and decisions that keep their businesses moving. Fleet is the company's foundation, and intelligent mobility is how the company leads. By combining deep fleet expertise with connected technologies, data-driven intelligence and strategic partnerships, Element helps clients lower total cost of ownership, improve uptime and driver experience, and build more resilient operations. Element manages over 1.5 million vehicles globally and leverages this scale and data to help clients optimize performance, identifying over $1.6-billion in cost savings opportunities across its clients' fleets in the past year. Through Element Mobility, the company is advancing its leadership into the next era of intelligent mobility to deliver measurable business outcomes for the company's clients.

Advisers

CIBC Capital Markets acted as exclusive financial adviser to Element in connection with the transaction. Mayer Brown represented BXCI.

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