easyhome Ltd. Increases Credit Facility to $300 Million

MISSISSAUGA, ONTARIO--(Marketwired - July 31, 2015) - easyhome Ltd. (TSX:EH), ("easyhome" or the "Company"), the Canadian leader in providing goods and financial services to the cash and credit constrained consumer, today announced that it has increased its total credit facility with the incumbent providers and agented by Crystal Financial by $100 million from $200 million to $300 million while reducing the current interest rate from 8.22% to 7.99%. The increased capital will support the growth of easyhome's consumer financing business, easyfinancial.

easyfinancial was launched in 2006 to provide term financing to consumers looking for credit alternatives that are more readily accessible than banks and less costly than payday loans. Over the past 36 months, easyfinancial has grown its consumer loans receivable portfolio by over 300% to $231 million at June 30, 2015. The additional capital secured today will allow easyfinancial to continue its growth and build upon its leadership position as an alternative provider of term financing to consumers.

"We are delighted that our existing lending partners once again agreed to increase our facility while reducing our cost of borrowing and providing some flexibility to our covenants," said Steve Goertz easyhome's Chief Financial Officer. "While we had other options to consider, we concluded that the best economic terms remained with the syndicate led by Crystal Financial LLC. Based on current forecasts, the additional $100M capital will provide the Company with the resources to meet its strategic goals and support its growth through to 2017 without the need to complete an equity raise."

In addition to increasing the size of the facility by $100.0 million, the amendment reduced the current interest rate on the term loan from 8.22% to 7.99%, revised the credit facility's financial covenants to provide more flexibility and extended the expiry date by 12 months to October 4, 2019.

"We are once again pleased to act as Administrative Agent and lead arranger on this expanded credit facility for easyhome," said Christopher Arnold, Senior Managing Director of Crystal Financial. "The Company's performance over the last several years demonstrates its expertise in maintaining a balanced approach to consumer lending while proactively managing risk. The increased size and improved terms of the entire facility reflect the lending syndicate's confidence in their business and the strength of the easyhome management team, systems, operational procedures and risk management practices."