MISSISSAUGA, ON, July 19,
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, announced today that it has
completed an amendment to increase its existing senior secured
revolving credit facility (the "Credit Facility"), including
a term extension, borrowing enhancements and the addition of three
new lenders.
The Company is increasing its Credit Facility from $370 million to $550
million, with the maturity extended to July 18, 2027. The facility will continue to bear
interest on advances payable at the rate of Adjusted 1-Month Term
Canadian Overnight Repo Rate Average ("Adjusted CORRA") plus
225 bps. Based on the current Adjusted CORRA rate of 4.92% as of
July 17, 2024, the interest rate on
the principal amount drawn would be 7.17%. Additionally, the
amendment incorporates key modifications including improved advance
rates, less restrictive covenants, and a broader syndicate of
lenders. The amended Credit Facility is underwritten by Bank of
Montreal, Royal Bank of
Canada, Wells Fargo Bank, CIBC,
National Bank of Canada,
Toronto-Dominion Bank and three new lenders including Desjardins,
Bank of Nova Scotia and
Raymond James. The Company can also
utilize an accordion feature to increase the size of the facility
by up to an additional $150
million.
"The increase to our revolving credit facility and the addition
of three new lenders to the syndicate demonstrates the continued
confidence of our bank partners, while providing additional capital
to support our organic growth plans," said Jason Mullins, goeasy's President and Chief
Executive Officer.
"The increase to the credit facility now lifts our total funding
capacity to nearly $1.3 billion,"
said Hal Khouri, goeasy's Executive
Vice President and Chief Financial Officer, "In addition to several
enhancements that improve the flexibility of the facility, it now
includes participation from all the major banks in Canada, a testament to the strength of our
business."
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 over 70
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". goeasy is rated BB- with a stable trend
from S&P and Ba3 with a stable trend from Moody's.
For more information about goeasy and our business units,
visit www.goeasy.com, www.easyfinancial.com, www.lendcare.ca,
www.easyhome.ca.
For further information contact:
Jason Mullins
President & Chief Executive Officer
(905) 272-2788
Farhan Ali
Khan
Senior Vice President, Chief Corporate Development Officer
(905) 272-2788
SOURCE goeasy Ltd