MISSISSAUGA,
ON, Oct. 21, 2024 /CNW/ - goeasy Ltd.
(TSX: GSY) ("goeasy" or the "Company"), one of
Canada's leading consumer lenders
focused on delivering a full suite of financial services to
Canadians with non-prime credit, is pleased to announce that it
plans to offer, subject to market and other conditions,
US$350 million aggregate principal
amount of senior unsecured notes (the "USD Notes") and
C$150 million aggregate principal
amount of senior unsecured notes (together with the USD Notes, the
"Notes").
The actual terms of the Notes, including interest
rate, will depend on market conditions at the time of pricing.
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
of the USD Notes.
goeasy intends to use the net proceeds from the
sale of the Notes to fund a cash tender
offer (the "Tender Offer") to purchase any
and all of its outstanding 4.375% senior unsecured notes due 2026
(the "2026 Notes"), partially repay indebtedness under
its secured facilities and for general corporate purposes. The
completion of the offering of the Notes is not contingent upon the
consummation of the Tender Offer. This press release shall not
constitute an offer to purchase any 2026 Notes.
The Notes are expected to be guaranteed on a
senior unsecured basis by certain of goeasy's current and future
subsidiaries.
The Notes and related guarantees have not been
and will not be registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any state securities
laws, and the Notes may not be offered or sold in the United States or to any U.S. persons
unless the Notes are registered under the Securities Act or
pursuant to an exemption from the registration requirements of the
Securities Act. This offering will be made only to qualified
institutional buyers in accordance with Rule 144A under the
Securities Act and outside the United
States to non-U.S. persons in offshore transactions in
compliance with Rule 903 of Regulation S under the Securities Act.
Additionally, the Notes have not been and will not be qualified for
sale to the public under applicable Canadian securities law. In
Canada, the offering will be made
pursuant to exemptions from the prospectus requirements of
applicable Canadian securities laws.
This announcement does not constitute an offer to
sell or a solicitation of an offer to buy any securities, nor shall
there be any sale of securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About goeasy
goeasy Ltd. is a Canadian company, headquartered
in Mississauga, Ontario, that
provides non-prime leasing and lending services through its
easyhome, easyfinancial and LendCare brands. Supported by over
2,500 employees, the Company offers a wide variety of financial
products and services including unsecured and secured instalment
loans, merchant financing through a variety of verticals and
lease-to-own merchandise. Customers can transact seamlessly through
an omnichannel model that includes online and mobile platforms,
over 400 locations across Canada,
and point-of-sale financing offered in the retail, powersports,
automotive, home improvement and healthcare verticals, through over
10,300 merchant partners across Canada. Throughout the Company's history, it
has acquired and organically served over 1.4 million Canadians and
originated over $14.3 billion in
loans.
Accredited by the Better Business Bureau, goeasy
is the proud recipient of several awards in recognition of its
exceptional culture and continued business growth including 2024
Best Workplaces™ in Financial Services & Insurance, Waterstone
Canada's Most Admired Corporate Cultures, ranking on the 2022
Report on Business Women Lead Here executive gender diversity
benchmark, placing on the Report on Business ranking of
Canada's Top Growing Companies,
ranking on the TSX30, Greater Toronto Top Employers Award and has
been certified as a Great Place to Work®. The Company is
represented by a diverse group of team members from over 70
nationalities who believe strongly in giving back to communities in
which it operates. To date, goeasy has raised and donated over
$5.8 million to support its
long-standing partnerships with BGC Canada and many other local
charities. In 2023, the Company announced a 3-year, $1.4
million commitment to BGC Canada's Food Fund.
goeasy Ltd.'s. common shares are listed on the
TSX under the trading symbol "GSY".
Forward-Looking Statements
This press release includes forward-looking
statements about goeasy, including, but not limited to, its
business operations, strategy and expected financial performance
and condition. Forward-looking statements include, but are not
limited to, statements with respect to the expectations regarding
the completion and the use of net proceeds of the Notes offering,
the guarantee of the Notes by certain of goeasy's current and
future subsidiaries, the entry into and effect of the Currency
Swap, and the repurchase of the 2026 Notes pursuant to the Tender
Offer. In certain cases, forward-looking statements that are
predictive in nature, depend upon or refer to future events or
conditions, and/or can be identified by the use of words such as
"expect", "continue", "anticipate", "intend", "aim", "plan",
"believe", "budget", "estimate", "forecast", "foresee", "target" or
negative versions thereof and similar expressions, and/or state
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on certain
factors and assumptions, including expected growth, results of
operations and business prospects and are inherently subject to,
among other things, risks, uncertainties and assumptions about the
Company's operations, economic factors and the industry generally.
There can be no assurance that forward-looking statements will
prove to be accurate as actual results and future events could
differ materially from those expressed or implied by
forward-looking statements made by the Company. Some important
factors that could cause actual results to differ materially from
those expressed in the forward-looking statements include, but are
not limited to, goeasy's ability to enter into new lease and/or
financing agreements, collect on existing lease and/or financing
agreements, open new locations on favourable terms, offer products
which appeal to customers at a competitive rate, respond to changes
in legislation, react to uncertainties related to regulatory
action, raise capital under favourable terms, compete, manage the
impact of litigation (including shareholder litigation), control
costs at all levels of the organization and maintain and enhance
the system of internal controls.
The Company cautions that the foregoing list is
not exhaustive. These and other factors could cause actual results
to differ materially from our expectations expressed in the
forward-looking statements, and further details and descriptions of
these and other factors are disclosed in the Company's Management's
Discussion and Analysis, including under the section entitled "Risk
Factors". The reader is cautioned to consider these, and other
factors carefully and not to place undue reliance on
forward-looking statements, which may not be appropriate for other
purposes. The Company is under no obligation (and expressly
disclaims any such obligation) to update or alter the
forward-looking statements whether as a result of new information,
future events or otherwise, unless required by law.
SOURCE goeasy Ltd.
