goeasy Ltd.
TSX : GSY

goeasy Ltd.

June 21, 2017 17:31 ET

goeasy Ltd. Announces Closing of $53 Million Convertible Unsecured Subordinated Debentures Offering

MISSISSAUGA, ONTARIO--(Marketwired - June 21, 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 closed its previously announced offering of convertible unsecured subordinated debentures due July 31, 2022 (the "Debentures") at a price of $1,000 per Debenture (the "Offering"). The initial closing of the Offering, for $50 million aggregate principal amount of Debentures, took place on June 2, 2017. The syndicate of underwriters, led by RBC Capital Markets and BMO Capital Markets, also subsequently exercised its over-allotment option to purchase an additional $3 million aggregate principal amount of Debentures, for aggregate gross proceeds to goeasy from the Offering of $53 million.

The Debentures are unsecured subordinated obligations of goeasy and 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 are convertible at any time at the option of the holders into common shares of goeasy at a conversion price of $44.00 per common share. The Debentures will mature on July 31, 2022.

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.

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, and use of proceeds 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