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.
