easyhome Ltd.
TSX : EH

easyhome Ltd.

July 31, 2015 13:54 ET

easyhome Ltd. Increases Credit Facility to $300 Million

MISSISSAUGA, ONTARIO--(Marketwired - July 31, 2015) - easyhome Ltd. (TSX:EH), ("easyhome" or the "Company"), the Canadian leader in providing goods and financial services to the cash and credit constrained consumer, today announced that it has increased its total credit facility with the incumbent providers and agented by Crystal Financial by $100 million from $200 million to $300 million while reducing the current interest rate from 8.22% to 7.99%. The increased capital will support the growth of easyhome's consumer financing business, easyfinancial.

easyfinancial was launched in 2006 to provide term financing to consumers looking for credit alternatives that are more readily accessible than banks and less costly than payday loans. Over the past 36 months, easyfinancial has grown its consumer loans receivable portfolio by over 300% to $231 million at June 30, 2015. The additional capital secured today will allow easyfinancial to continue its growth and build upon its leadership position as an alternative provider of term financing to consumers.

"We are delighted that our existing lending partners once again agreed to increase our facility while reducing our cost of borrowing and providing some flexibility to our covenants," said Steve Goertz easyhome's Chief Financial Officer. "While we had other options to consider, we concluded that the best economic terms remained with the syndicate led by Crystal Financial LLC. Based on current forecasts, the additional $100M capital will provide the Company with the resources to meet its strategic goals and support its growth through to 2017 without the need to complete an equity raise."

In addition to increasing the size of the facility by $100.0 million, the amendment reduced the current interest rate on the term loan from 8.22% to 7.99%, revised the credit facility's financial covenants to provide more flexibility and extended the expiry date by 12 months to October 4, 2019.

"We are once again pleased to act as Administrative Agent and lead arranger on this expanded credit facility for easyhome," said Christopher Arnold, Senior Managing Director of Crystal Financial. "The Company's performance over the last several years demonstrates its expertise in maintaining a balanced approach to consumer lending while proactively managing risk. The increased size and improved terms of the entire facility reflect the lending syndicate's confidence in their business and the strength of the easyhome management team, systems, operational procedures and risk management practices."

Forward-Looking Statements

This new release includes forward-looking statements about easyhome, including, but not limited to, its business operations, strategy and expected financial performance and condition. Forward-looking statements include, but are not limited to, those with respect to the estimated number of new locations to be opened, targets for growth of the consumer loans receivable portfolio, annual revenue growth targets, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements, liquidity of the Company, plans and references to future operations and results and critical accounting estimates. 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 '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, 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 the Company's December 31, 2014 Management Discussion and Analysis 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, due to, but not limited to important factors such as the Company'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, secure new franchised locations, purchase 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, 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.

The reader is cautioned to consider these and other factors carefully and not 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.

About easyhome

As at June 30, 2015, the Company operated 185 easyhome leasing stores (including 24 franchises and 6 consolidated franchise locations) and 201 easyfinancial locations.

easyhome Ltd. is the Canadian leader in providing goods and financial services to the cash and credit constrained consumer. easyhome Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. easyhome Leasing is Canada's largest merchandise leasing Company, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. easyfinancial is a leading provider of consumer loans as an alternative to traditional banks and payday lenders.

easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.

About Crystal Financial LLC

Crystal Financial LLC, a portfolio company of Solar Capital Ltd. is an independent commercial finance company that provides senior and junior secured loans for both asset-based and cash flow financings (minimum of $10 million in fundings) to middle-market companies. Its team of experienced, responsive professionals has underwritten, closed and managed more than $20 billion in secured debt commitments across a wide range of industries. For more information please visit www.crystalfinco.com.

Contact Information

  • easyhome Ltd.
    David Ingram
    President and Chief Executive Officer
    (905) 272-2788

    easyhome Ltd.
    Steve Goertz
    Executive Vice President and Chief Financial Officer
    (905) 272-2788
    www.easyhome.ca