goeasy Ltd. Announces Pricing of US$320 Million of Senior Unsecured Notes

MISSISSAUGA, Ontario, April 22, 2021 (GLOBE NEWSWIRE) -- goeasy Ltd. (TSX: GSY) (“goeasy” or the “Company”), a leading full-service provider of goods and alternative financial services, is pleased to announce that it priced US$320 million aggregate principal amount of 4.375% senior unsecured notes due 2026 (the “Notes”). The Notes will be guaranteed on a senior unsecured basis by certain of goeasy’s current and future subsidiaries.

goeasy estimates the net proceeds from the offering will be approximately C$392.7 million, based on the Bank of Canada daily rate on April 21, 2021 for the Canadian dollar/U.S. dollar exchange rate, after deducting fees and estimated offering expenses, and subject to adjustment as a result of the Currency Swap referred to below. The gross proceeds from the sale of the Notes will be deposited in an escrow account. The holders of the Notes will have a security interest in the escrow account and the escrowed funds to secure the obligations under the Notes pending satisfaction of the conditions to release of such proceeds. Upon release from escrow, the proceeds from the sale of the Notes, together with the proceeds from the previously announced bought deal equity offering of 1,404,265 subscription receipts of the Company, will be used to fund the cash portion of the purchase price for the Company’s previously announced acquisition (the “Acquisition”) of LendCare Holdings Inc. (“LendCare”) in the amount of $310 million, to repay $243.5 million of existing LendCare debt, and to pay expenses incurred in connection with the Acquisition and the offering, including fees associated with entering into the Currency Swap, with the balance to be used for general corporate purposes.

The offering of the Notes is expected to close on April 29, 2021, subject to customary closing conditions. Concurrently with the offering, goeasy expects to enter into a currency swap agreement (the “Currency Swap”) to fix the foreign currency exchange rate for the proceeds from the offering and for all required payments of principal and interest under the Notes.

If the Acquisition is not completed by December 1, 2021, or upon the occurrence of certain other events, the Notes will be subject to a special mandatory redemption. The special mandatory redemption price of the Notes will be equal to 100% of the initial issue price of the Notes plus accrued and unpaid interest and additional amounts, if any, from the issue date, or, if applicable, from the most recent date to which interest has been paid, to the payment date of such redemption. The escrowed funds will be applied to pay for any such special mandatory redemption.