MISSISSAUGA, ON, Nov. 13,
2023 /CNW/ - goeasy Ltd. (TSX: GSY)
("goeasy" or the "Company"), one of
Canada's leading non-prime
consumer lenders, is pleased to announce that it priced
US$550 million aggregate principal
amount of 9.25% senior unsecured notes due 2028 (the
"Notes"). The Notes will be guaranteed on a senior
unsecured basis by certain of goeasy's current and future
subsidiaries. The Company is also expected to enter into a currency
swap agreement (the "Currency Swap") to fix the foreign
currency exchange rate for the proceeds from the offering, and for
all required payments of principal and interest under the Notes,
which it expects will reduce the effective cost of borrowing of the
Notes when converted into Canadian currency.
goeasy estimates the net proceeds from the offering will be
approximately C$745 million, based on
the Bank of Canada daily rate on
November 10, 2023 for the Canadian
dollar/U.S. dollar exchange rate, after deducting fees and
estimated offering expenses, and subject to adjustment as a result
of the Currency Swap. goeasy intends to use the proceeds from the
sale of the Notes to fund the redemption of all of its outstanding
5.375% senior unsecured notes due 2024 (the "2024 Notes").
The notice of redemption issued today for the 2024 Notes is
conditioned upon completion of the offering. The closing of the
offering is not conditioned upon the closing of the redemption.
This press release does not constitute a notice of redemption with
respect to the 2024 Notes.
"We are pleased to announce the refinancing of our unsecured
notes, which were oversubscribed and demonstrate the confidence in
our business. The refinancing further extends the maturity of the
debt in our capital structure, ensuring we can remain focused on
our growth ambitions," said Jason
Mullins, goeasy's President & Chief Executive Officer,
"While the pricing of these notes reflects current market
conditions, we also intend to enter into a currency swap agreement,
which we expect to lower the effective cost of borrowing.
Furthermore, the effects of this refinancing have already been
incorporated into the financial outlook we provided earlier this
year, which includes expanding margins and producing a return on
equity consistently above 20%. We remain confident in achieving our
3-year financial outlook."
The offering of the Notes is expected to close on November 28, 2023, subject to customary closing
conditions.
The Notes and related guarantees have not been and will not be
registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws, and the
Notes may not be offered or sold in the
United States or to any U.S. persons unless the Notes are
registered under the Securities Act or pursuant to an exemption
from the registration requirements of the Securities Act. This
offering will be made only to qualified institutional buyers in
accordance with Rule 144A under the Securities Act and outside
the United States to non-U.S.
persons in offshore transactions in compliance with Rule 903 of
Regulation S under the Securities Act. Additionally, in
Canada the offering will be made
pursuant to exemptions from the prospectus requirements of
applicable Canadian securities laws.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
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 approximately 2,400 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
9,100 merchant partners across Canada. Throughout the Company's history, it
has acquired and organically served over 1.3 million Canadians and
originated over $12.1 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 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 $5.2
million to support its long-standing partnerships with BGC
Canada and many other local charities.
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
completion and the use of proceeds of the Notes offering, the
guarantee of the Notes by certain of goeasy's current and future
subsidiaries, the entry into the Currency Swap and the anticipated
effects thereof, the redemption of the 2024 Notes, and the
Company's ability to achieve its 3-year financial outlook,
including expanding margins and producing a return on equity
consistently above 20%. Figures reported with respect to outlook
are targets established by the Company and are subject to change as
plans and business conditions vary. Accordingly, investors are
cautioned not to place undue reliance on the foregoing guidance.
Actual results may differ materially. 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.