pcNewsWire – goeasy Ltd. (TSX: GSY) has engaged RBC Capital Markets and BMO Capital Markets for a bought deal of $50 million aggregate principal amount of convertible unsecured subordinated debentures due July 31, 2022 at a price of $1,000 per debenture.
goeasy intends to use the net proceeds to support the strategic growth initiatives for easyfinancial, its consumer lending platform, and for general corporate purposes.
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goeasy Ltd. Announces $50 Million Bought Deal Offering Of 5.75% Convertible Unsecured Subordinated Debentures
Mississauga, May 25, 2017: 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.
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.
For further information contact:
President and Chief Executive Officer
Executive Vice President and Chief Financial Officer
SOURCE: goeasy Ltd.