goeasy closes US $325M senior note offering

News Release

goeasy Ltd. Enters into New Credit Facility and Closes US$325 Million Offering of Senior Unsecured Notes

Mississauga, November 1, 2017: goeasy Ltd. (TSX: GSY) (“goeasy” or the “Company”) is pleased to announce that it closed its previously announced offering of US$325 million aggregate principal amount of 7.875% senior unsecured notes due 2022 (the “Notes”). Concurrently with the closing of the offering, goeasy completed the closing of a new senior secured revolving credit facility (the “New Credit Facility”) and entered into a currency swap agreement (the “Currency Swap”).

The New Credit Facility is provided by a syndicate of banks in an aggregate principal amount of C$110 million, available on a revolving credit basis. Interest on advances is payable at either the Canadian Bankers’ Acceptance rate plus 450 bps or the lender’s prime rate plus 350, at the option of the Company.

The Currency Swap fixes the foreign currency exchange rate for the proceeds from the offering of Notes and for all required payments of principal and interest under the Notes. Pursuant to the Currency Swap, the Company established an exchange rate of US$1.00 = C$1.2890, effectively hedging the obligation under the Notes to C$418.9 million at a Canadian dollar interest rate of 7.84%.

The Company used a portion of the net proceeds from the sale of the Notes to repay the existing term loan and to pay fees and expenses of the offering of the Notes. The Company intends to use the remainder of the net proceeds from the sale of Notes, and the funds available under the New Credit Facility, to expand its consumer loan portfolio and for general corporate purposes.

Combined, the Notes and the New Credit Facility replace goeasy’s existing credit facility which consisted of a C$280 million term loan and a C$20 million revolving operating facility. As a result of repaying and terminating the existing term loan, the Company will incur an early repayment penalty and will write-off the remaining unamortized deferred financing costs. The Company expects to recognize a one-time before tax charge of $8.2 million in the fourth quarter of 2017.

“We are delighted to have completed this refinancing,” said Steve Goertz, goeasy’s Executive Vice President and Chief Financial Officer. “The offering was very well received by the debt markets in both Canada and the United States. The funding obtained through this offering, together with the additional funding available through the new revolving credit facility, provide us with immediate capital to fund our growth and establishes a structure for securing additional debt capital in the future.”

About goeasy

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