MISSISSAUGA, Ontario, June 21, 2018 (GLOBE NEWSWIRE) -- goeasy Ltd. (TSX:GSY) (“goeasy” or the “Company”) is pleased to announce that today it entered into an amendment to its pre-existing senior secured revolving credit facility (the “Credit Facility”) to increase the amount available to be borrowed thereunder and to adjust certain covenants.
The amendment increased the maximum principal amount available from C$110 million to C$174.5 million, available on a revolving credit basis subject to the satisfaction of customary conditions, plus an increase of C $14M to the accordion feature of the Credit Facility, for a total of C$89M. Certain of the financial covenants in the Credit Facility were also made less restrictive, in order to provide the Company with increased operational flexibility. There is no change to the cost of borrowing under this Credit Facility. Interest on advances continues to be payable at either the Canadian Bankers’ Acceptance rate plus 450 bps or the lender’s prime rate plus 350 bps, at the option of the Company.
The Company intends to use borrowings under the Credit Facility to expand its consumer loan portfolio and for general corporate purposes.
“After a strong start to the year, we are pleased to have expanded the revolving credit facility and to have amended our covenants,” said David Ingram, goeasy’s Chief Executive Officer. “These amendments will provide added capacity and flexibility to allow for the accelerated growth of our easyfinancial loan portfolio.”
Forward-Looking Statements
This press release includes forward-looking statements about goeasy, including, but not limited to, the Company’s growth plans, expectations regarding the use of proceeds of the Credit Facility and the Company’s continuing ability to satisfy the conditions for borrowing thereunder. In certain cases, forward-looking 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, including the risk factors referred to in the Company’s Annual Information Form dated February 20, 2018, its Management Discussion and Analysis for the year ended December 31, 2017 and its Management Discussion and Analysis for the three months 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 the risks, uncertainties and assumptions noted above 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.
About goeasy
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-prime 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 more information, visit www.goeasy.com.
For further information contact:
Jason Mullins
President and Chief Operating Officer
(905) 272-2788