MISSISSAUGA, ON, Nov. 4, 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$400
million aggregate principal amount of 6.875% senior
unsecured notes due 2030 (the "USD Notes"), which was
upsized from US$350 million at the
initial time of offering, and C$150
million aggregate principal amount of 6.000% senior
unsecured notes due 2030 (the "CAD Notes", and together with
the USD Notes, the "Notes").
In connection with the offering of the USD Notes, goeasy also
entered into a currency swap agreement (the "Currency Swap")
to reduce the Canadian dollar equivalent cost of borrowing of the
USD Notes to 5.977% per annum. goeasy intends to use the net
proceeds from the sale of the Notes to fund the previously
announced, and now expired, cash tender offer (the "Tender
Offer") to purchase any and all of its outstanding 4.375%
senior unsecured notes due 2026 (the "2026 Notes"),
partially repay indebtedness under its secured facilities and for
general corporate purposes. This press release shall not constitute
an offer to purchase any of the 2026 Notes.
"We are pleased to announce the closing of our unsecured notes
offering, including our inaugural Canadian dollar denominated
issuance, highlighting the confidence in our business," said
Hal Khouri, goeasy's Executive Vice
President & Chief Financial Officer, "The Canadian dollar
equivalent cost of borrowing of the USD Notes at 5.977% per annum
is down from 6.38% per annum at our last notes offering in July.
This financing increases our total funding capacity to C$1.8 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 10,300 merchant partners across
Canada. Throughout the Company's
history, it has acquired and organically served over 1.4 million
Canadians and originated over C$14.3
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
C$5.8 million to support its
long-standing partnerships with BGC Canada and many other local
charities. In 2023, the Company announced a 3-year, C$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
net proceeds of the Notes offering, the effect of the Currency Swap
and the repurchase of the 2026 Notes pursuant to the Tender Offer.
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.