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  • goeasy Ltd. announces proposed US$320 Million senior unsecured notes offering
  • goeasy also expects to enter into a currency swap agreement to adjust the foreign currency exchange rate for the proceeds from the offering
  • Proceeds from the sale of the notes will be deposited in an escrow account controlled by Deutsche Bank Trust Company Americas
  • 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) is up 0.06 per cent, trading at C$138.99 per share at 2 pm ET

goeasy Ltd (GSY) plans to offer a US$320 million aggregate principal amount of senior unsecured notes.

The actual terms of the offering, 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 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.

Proceeds from the sale of the notes will be deposited in an escrow account in the name of the company but controlled by Deutsche Bank Trust Company Americas on behalf of the holders of the notes pending satisfaction of conditions to release of such proceeds.

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 special 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 special 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) is up 0.06 per cent, trading at C$138.99 per share at 2 pm ET.

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