MISSISSAUGA, ON, July 25,
2024 /CNW/ - goeasy Ltd. (TSX: GSY)
("goeasy" or the "Company"), one of
Canada's leading consumer lenders
focused on delivering a full suite of financial services to
Canadians with non-prime credit, is pleased to announce that it
closed its previously announced offering of US$200 million aggregate principal amount of
7.625% senior unsecured notes due 2029 (the "New
Notes"), which was upsized from US$150
million at the initial time of offering. The New Notes were
issued at a price of US$1,018.75 per
US$1,000 principal amount, plus
accrued interest from July 1, 2024.
The New Notes have substantially identical terms (other than
issuance price, date of issuance and the date from which interest
initially accrues) as, and will be treated as a single series with,
the Company's 7.625% unsecured notes due 2029 issued on
February 23, 2024 (together with the
New Notes, the "Notes"). An aggregate of US$600 million principal amount of Notes is
outstanding following closing of the offering.
In connection with the offering of the New Notes, goeasy also
entered into a currency swap agreement (the "Currency Swap")
to reduce the Canadian dollar equivalent cost of borrowing of the
New Notes to 6.38% per annum. goeasy intends to use the net
proceeds from the sale of the New Notes for general corporate
purposes, including the repayment of indebtedness.
"We are pleased to announce the closing of our unsecured notes
offering, which was oversubscribed, highlighting the confidence in
our business," said Hal Khouri,
goeasy's Executive Vice President & Chief Financial Officer,
"We are pleased that the Canadian dollar equivalent cost of
borrowing at 6.38% per annum is down from 7.195% per annum at our
last notes offering in February. This financing increases our total
funding capacity to over $1.5 billion
to support our organic growth plans."
About goeasy
goeasy Ltd. is a Canadian company, headquartered in Mississauga, Ontario, that provides non-prime
leasing and lending services through its easyhome, easyfinancial
and LendCare brands. Supported by over 2,500 employees, the Company
offers a wide variety of financial products and services including
unsecured and secured instalment loans, merchant financing through
a variety of verticals and lease-to-own merchandise. Customers can
transact seamlessly through an omnichannel model that includes
online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in
the retail, powersports, automotive, home improvement and
healthcare verticals, through over 10,000 merchant partners across
Canada. Throughout the Company's
history, it has acquired and organically served approximately 1.4
million Canadians and originated over $13.5
billion in loans.
Accredited by the Better Business Bureau, goeasy is the proud
recipient of several awards in recognition of its exceptional
culture and continued business growth including 2024 Best
Workplaces™ in Financial Services & Insurance, Waterstone
Canada's Most Admired Corporate Cultures, ranking on the 2022
Report on Business Women Lead Here executive gender diversity
benchmark, placing on the Report on Business ranking of
Canada's Top Growing Companies,
ranking on the TSX30, Greater Toronto Top Employers Award and has
been certified as a Great Place to Work®. The Company is
represented by a diverse group of team members from 78
nationalities who believe strongly in giving back to communities in
which it operates. To date, goeasy has raised and donated over
$5.6 million to support its
long-standing partnerships with BGC Canada and many other local
charities. In 2023, the Company announced a 3-year, $1.4 million commitment to BGC Canada's Food
Fund.
goeasy Ltd.'s. common shares are listed on the TSX under the
trading symbol "GSY".
Forward-Looking Statements
This press release includes forward-looking statements about
goeasy, including, but not limited to, its business operations,
strategy and expected financial performance and condition.
Forward-looking statements include, but are not limited to,
statements with respect to the expectations regarding the use of
proceeds of the Notes offering and the effect of the Currency Swap.
In certain cases, forward-looking statements that are predictive in
nature, depend upon or refer to future events or conditions, and/or
can be identified by the use of words such as "expect", "continue",
"anticipate", "intend", "aim", "plan", "believe", "budget",
"estimate", "forecast", "foresee", "target" or negative versions
thereof and similar expressions, and/or state that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Forward-looking statements are based on certain factors and
assumptions, including expected growth, results of operations and
business prospects and are inherently subject to, among other
things, risks, uncertainties and assumptions about the Company's
operations, economic factors and the industry generally. There can
be no assurance that forward-looking statements will prove to be
accurate as actual results and future events could differ
materially from those expressed or implied by forward-looking
statements made by the Company. Some important factors that could
cause actual results to differ materially from those expressed in
the forward-looking statements include, but are not limited to,
goeasy's ability to enter into new lease and/or financing
agreements, collect on existing lease and/or financing agreements,
open new locations on favourable terms, offer products which appeal
to customers at a competitive rate, respond to changes in
legislation, react to uncertainties related to regulatory action,
raise capital under favourable terms, compete, manage the impact of
litigation (including shareholder litigation), control costs at all
levels of the organization and maintain and enhance the system of
internal controls.
The Company cautions that the foregoing list is not exhaustive.
These and other factors could cause actual results to differ
materially from our expectations expressed in the forward-looking
statements, and further details and descriptions of these and other
factors are disclosed in the Company's Management's Discussion and
Analysis, including under the section entitled "Risk Factors". The
reader is cautioned to consider these, and other factors carefully
and not to place undue reliance on forward-looking statements,
which may not be appropriate for other purposes. The Company is
under no obligation (and expressly disclaims any such obligation)
to update or alter the forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by law.
SOURCE goeasy Ltd.