pcNewsWire – goeasy Ltd. (TSX: GSY) has closed its previously announced $50 million offering of convertible unsecured subordinated debentures due July 31, 2022 at a price of $1,000 per debenture.
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.
goeasy 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.
News Release
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goeasy Ltd. Announces Closing of $53 Million Convertible Unsecured Subordinated Debentures Offering
Mississauga, June 21, 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 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.
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.
For further information contact:
David Ingram
President and Chief Executive Officer
(905) 272‐2788
Steve Goertz
Executive Vice President and Chief Financial Officer
(905) 272‐2788
