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  • goeasy Ltd. announces Pricing of US$320 Million of senior unsecured notes
  • goeasy estimates the net proceeds from the offering will be approximately C$392.7 million
  • Proceeds from the sale of the notes will be deposited in an escrow account
  • Upon release from escrow, proceeds from the sale and a previously announced bought deal equity offering will be used to fund the acquisition of LendCare Holdings Inc.
  • goeasy Ltd. is a Canadian company that provides non-prime leasing and lending services through its easyhome and easyfinancial divisions
  • goeasy Ltd. (GSY) opened trading at C$145.11 per share

goeasy Ltd. (GSY) has priced US$320 million aggregate principal amount of 4.375% senior unsecured notes due 2026. 

goeasy estimates the net proceeds from the offering will be approximately C$392.7 million, after deducting fees and estimated offering expenses, and subject to adjustment as a result of the currency swap referred to below.

Concurrently with the offering, goeasy expects to enter into a currency swap agreement to adjust the foreign currency exchange rate for the proceeds from the offering and for all required payments of principal and interest under the notes.

The offering is expected to close on April 29, 2021, subject to customary closing conditions.

Proceeds from the sale of the notes will be deposited in an escrow account.  

Upon release from escrow, proceeds from the sale, together with a previous bought deal equity offering will be used to fund the cash portion of the acquisition of LendCare Holdings Inc. 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, with the balance to be used for general corporate purposes.

If the acquisition is not completed by December 1, 2021, the notes will be subject to a special mandatory redemption. The mandatory redemption price of the notes will be equal to 100% of the initial issue price plus accrued and unpaid interest and additional amounts. The escrowed funds will be applied to pay for any such mandatory redemption.

The notes are expected to be guaranteed on a senior unsecured basis by certain of goeasy’s current and future subsidiaries.

goeasy Ltd. is a Canadian company that provides non-prime leasing and lending services through its easyhome and easyfinancial divisions.

goeasy Ltd. (GSY) opened trading at $145.11 per share.

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