goeasy Ltd.
TSX : GSY

goeasy Ltd.

May 25, 2017 15:38 ET

goeasy Ltd. Announces $50 Million Bought Deal Offering Of 5.75% Convertible Unsecured Subordinated Debentures

MISSISSAUGA, ONTARIO--(Marketwired - May 25, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES

goeasy Ltd. (TSX:GSY) ("goeasy" or the "Company"), a leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians, is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets, under which the underwriters have agreed to purchase $50 million aggregate principal amount of convertible unsecured subordinated debentures due July 31, 2022 (the "Debentures") at a price of $1,000 per Debenture (the "Offering"). goeasy has also granted the underwriters an option to purchase up to an additional $7.5 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, at the underwriters' discretion, for a period of 30 days following closing of the Offering. The Offering is expected to close on or about June 2, 2017.

The Debentures will be subordinated, unsecured obligations of goeasy and will bear interest at a rate of 5.75% per annum, payable semi-annually in arrears on July 31 and January 31 of each year, commencing January 31, 2018. The Debentures will be convertible at any time at the option of the holders into common shares at a conversion price of $44.00 per share. The Debentures will mature on July 31, 2022.

The Debentures will not be redeemable prior to July 31, 2020. On and after July 31, 2020 and prior to July 31, 2021, the Debentures may be redeemed by the Company, in whole or in part from time to time, on not more than 60 days and not less than 30 days prior notice at a redemption price equal to their principal amount plus accrued and unpaid interest, if any, up to but excluding the date set for redemption, provided that the weighted average trading price of the common shares on the TSX for the 20 consecutive trading days ending five trading days prior to the date on which notice of redemption is provided is at least 125% of the conversion price. On or after July 31, 2021 and prior to the maturity date, the Company may, at its option, redeem the Debentures, in whole or in part, from time to time at a redemption price equal to their principal amount plus accrued and unpaid interest.

The Company intends to use the net proceeds of the Offering to support the strategic growth initiatives for easyfinancial, the Company's consumer lending platform, and for general corporate purposes.

"We are confident that our growth plans for easyfinancial will enable us to achieve our gross consumer receivable target of $475 - $500 million by the end of 2017," said David Ingram, goeasy's President and Chief Executive Officer. "To support our growth initiatives, we continue to assess alternatives to our current funding structure. This offering is a positive first step towards achieving our objective of diversifying our funding sources and optimizing our capital structure at attractive levels."

A prospectus supplement to the short form base shelf prospectus dated May 19, 2017 will be filed with securities regulatory authorities in all of the provinces of Canada. The Offering is subject to customary regulatory approvals, including the approval of the Toronto Stock Exchange.

The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This news release is not an offer of securities for sale in the United States and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

This press release includes forward-looking statements about goeasy, including, but not limited to, the Company's growth plans, gross consumer receivable target, funding sources, capital structure, use of proceeds of the Offering as well as the expected closing date of the Offering. 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, 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 Form dated February 15, 2017, its Management Discussion and Analysis for the year ended December 31, 2016 and its Management Discussion and Analysis for the three months ended March 31, 2017, 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, 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 goeasy

As at March 31, 2017, the Company operated 209 easyfinancial locations (including 44 kiosks located within easyhome stores) and 174 easyhome stores (including 27 franchises and 2 consolidated franchise locations).

goeasy Ltd. is a leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians. 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 of over 200 easyfinancial and 170 easyhome locations across Canada 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.

Contact Information

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

    Steve Goertz
    Executive Vice President and Chief Financial Officer
    (905) 272-2788