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  • goeasy Ltd. (GSY) has announced a $500 million increase to its existing revolving securitization warehouse facility
  • The company has increased its securitization facility from $900 million to $1.4 billion
  • Proceeds from the securitization facility will be used for general corporate purposes, primarily funding the growth of the company’s consumer loan portfolio
  • goeasy Ltd. provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands
  • goeasy Ltd. was up 1.612 per cent, trading at $100.20 at 11:10 AM ET

The existing revolving securitization warehouse facility of goeasy (GSY) has been increased by $500 million.

The securitization facility of the company increased from $900 million to $1.4 billion.

The amendment to the securitization facility includes several modifications, including improved eligibility criteria for consumer loans and pool concentration limits, resulting in increased funding capacity.

The lending syndicate for the securitization facility continues to consist of National Bank Financial Markets, Bank of Montreal and Royal Bank of Canada, and the facility continues to bear interest on advances payable at the one-month Canadian Dollar Offered Rate (CDOR) plus 185 bps.

Based on the current one-month CDOR rate of 2.23 per cent as of June 30, 2022, the interest rate would be 4.08 per cent.

Proceeds from the securitization facility will be used for general corporate purposes, primarily funding the growth of the company’s consumer loan portfolio.

“Remaining well capitalized is essential to achieving our 3-year plan, which includes growing the consumer loan book by 75 per cent, from $2 billion at the end of last year to over $3.5 billion in 2024,” stated Jason Mullins, goeasy’s President and Chief Executive Officer.

“Increasing our funding capacity by another $500 million provides us with almost $1.1 billion in total forward liquidity, which is sufficient to fund our organic growth into the second quarter of 2025,”he added. goeasy Ltd. provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands.

goeasy Ltd. was up 1.612 per cent, trading at $100.20 at 11:10 AM ET.

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