goeasy Ltd. Announces Pricing of US$550 Million of Senior Unsecured Notes

MISSISSAUGA, ON, Nov. 13, 2023 /CNW/ - goeasy Ltd. (TSX: GSY) ("goeasy" or the "Company"), one of Canada's leading non-prime consumer lenders, is pleased to announce that it priced US$550 million aggregate principal amount of 9.25% senior unsecured notes due 2028 (the "Notes").  The Notes will be guaranteed on a senior unsecured basis by certain of goeasy's current and future subsidiaries. The Company is also expected 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, which it expects will reduce the effective cost of borrowing of the Notes when converted into Canadian currency.

goeasy estimates the net proceeds from the offering will be approximately C$745 million, based on the Bank of Canada daily rate on November 10, 2023 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. goeasy intends to use the proceeds from the sale of the Notes to fund the redemption of all of its outstanding 5.375% senior unsecured notes due 2024 (the "2024 Notes"). The notice of redemption issued today for the 2024 Notes is conditioned upon completion of the offering. The closing of the offering is not conditioned upon the closing of the redemption. This press release does not constitute a notice of redemption with respect to the 2024 Notes.

"We are pleased to announce the refinancing of our unsecured notes, which were oversubscribed and demonstrate the confidence in our business. The refinancing further extends the maturity of the debt in our capital structure, ensuring we can remain focused on our growth ambitions," said Jason Mullins, goeasy's President & Chief Executive Officer, "While the pricing of these notes reflects current market conditions, we also intend to enter into a currency swap agreement, which we expect to lower the effective cost of borrowing. Furthermore, the effects of this refinancing have already been incorporated into the financial outlook we provided earlier this year, which includes expanding margins and producing a return on equity consistently above 20%. We remain confident in achieving our 3-year financial outlook."

The offering of the Notes is expected to close on November 28, 2023, subject to customary closing conditions.

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, in Canada the offering will be made pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.

This press release 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 approximately 2,400 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 9,100 merchant partners across Canada. Throughout the Company's history, it has acquired and organically served over 1.3 million Canadians and originated over $12.1 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 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 78 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $5.2 million to support its long-standing partnerships with BGC Canada and many other local charities.

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 proceeds of the Notes offering, the guarantee of the Notes by certain of goeasy's current and future subsidiaries, the entry into the Currency Swap and the anticipated effects thereof, the redemption of the 2024 Notes, and the Company's ability to achieve its 3-year financial outlook, including expanding margins and producing a return on equity consistently above 20%. Figures reported with respect to outlook are targets established by the Company and are subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the foregoing guidance. Actual results may differ materially. 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.

Jason Mullins, President & Chief Executive Officer, [phone]; Farhan Ali Khan, Senior Vice President & Chief Corporate Development Officer, [phone]