goeasy (TSX: GSY). Expands Credit Facility to $550 Million, Extends Term and Adds Lenders

2 min read | July 22, 2024 02:45 AM EDT | By Team Kalkine Media

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goeasy Ltd. (TSX: GSY), a leading Canadian consumer lender specializing in non-prime credit solutions, has successfully completed an amendment to increase its senior secured revolving credit facility (the "Credit Facility"). This enhancement includes a term extension, improved borrowing terms, and the addition of three new lenders.

Details of the Credit Facility Amendment

The Credit Facility has been increased from $370 million to $550 million, with the maturity date extended to July 18, 2027. The interest rate on advances will remain at Adjusted 1-Month Term Canadian Overnight Repo Rate Average ("Adjusted CORRA") plus 225 basis points. As of July 17, 2024, with the Adjusted CORRA rate at 4.92%, the effective interest rate on drawn amounts would be 7.17%.

Key modifications in the amended facility include enhanced advance rates, less restrictive covenants, and an expanded syndicate of lenders. The Credit Facility is now underwritten by a consortium including Bank of Montreal, Royal Bank of Canada, Wells Fargo Bank, CIBC, National Bank of Canada, Toronto-Dominion Bank, and new lenders Desjardins, Bank of Nova Scotia, and Raymond James. Additionally, the Company retains the option to utilize an accordion feature to further increase the facility size by up to $150 million.

Strategic Benefits of the Amendment

The increased Credit Facility provides goeasy with greater financial flexibility to support its growth and operational needs. The improved terms and expanded lender base are expected to enhance the Company’s liquidity position and strategic capabilities.

About goeasy

goeasy Ltd., headquartered in Mississauga, Ontario, is a prominent provider of non-prime leasing and lending services in Canada. Through its brands—easyhome, easyfinancial, and LendCare—the Company offers a broad range of financial products and services, including unsecured and secured installment loans, merchant financing, and lease-to-own merchandise. With over 2,500 employees, goeasy is dedicated to delivering comprehensive financial solutions to its diverse customer base.

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