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|goeasy Ltd. Announces Pricing of Senior Unsecured Notes|
Mississauga, July 12, 2018: goeasy Ltd. (TSX: GSY) ("goeasy" or the "Company") is pleased to announce that it priced US$150 million aggregate principal amount of 7.875% senior unsecured notes due 2022 (the "New Notes"). The New Notes will be issued at a price of US$1,050 per US$1,000 principal amount, plus accrued interest. After giving effect to the Currency Swap described below, the Canadian-dollar equivalent yield to maturity on the New Notes will be 6.17% per annum. The New Notes have 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 7.875% unsecured notes due 2022 issued on November 1, 2017 (together with the New Notes, the "Notes"). An aggregate of US$475 million principal amount of Notes will be outstanding after closing on the offering.
The New Notes will be guaranteed on a senior unsecured basis by certain of goeasy's current and future subsidiaries that are guarantors under the Company's senior secured revolving credit facility.
goeasy estimates the net proceeds from the offering will be approximately C$203 million, based on the closing Bank of Canada rate on July 12, 2018 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 referred to below. goeasy intends to use the net proceeds from the sale of the New Notes to expand its consumer loan portfolio, for general corporate purposes and to pay fees and expenses of the offering of the New Notes, including fees associated with entering into the Currency Swap referred to below.
The offering of the New Notes is expected to close on July 16, 2018, subject to customary closing conditions. Concurrently with the offering, goeasy expects to enter into a cross 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 New Notes.
The New 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 New Notes may not be offered or sold in the United States or to any U.S. persons unless the New 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.
This press release includes forward-looking statements about goeasy, including, but not limited to, the Company's growth plans, and expectations regarding the completion and use of proceeds of the New Note offering and regarding the effect of the Currency Swap. In certain cases, forwardlooking statements are 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 ‘expects', ‘anticipates',‘intends', ‘plans', ‘believes', ‘budgeted', ‘estimates', ‘forecasts', ‘targets' 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, market conditions, 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, as well as those factors referred to in the Company's Annual Information Formdated February 20, 2018, its Management Discussion and Analysis for the year ended December 31, 2017 and its Management Discussion and Analysis for the three month period ended March 31, 2018, as available on www.sedar.com , in each case in the section entitled "Risk Factors". 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. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. 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.
goeasy Ltd. is a leading full-service provider of goods and alternative financial services that provides everyday Canadians with a chance for a better tomorrow, today. goeasy Ltd. serves its customers through two key operating divisions, easyfinancial and easyhome. easyfinancial is a non- rime consumer lender that bridges the gap between traditional financial institutions and costly payday lenders. It is supported by a strong central credit adjudication process and industry leading risk analytics. easyfinancial also operates an indirect lending channel, offering loan products to consumers at the point-of-sale of third party merchants. easyhome is Canada's largest lease-to-own company, offering brand-name household furniture, appliances and electronics to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. Both operating divisions of goeasy Ltd. offer the highest level of customer service and enable customers to transact through a national store and branch network and through its online and mobile eCommerce enabled platforms.
goeasy Ltd. is listed on the TSX under the symbol ‘GSY'.
For further information contact:
Chief Executive Officer