easyhome Ltd. Announces New Credit Facility to Support the Growth of Its Consumer Finance Business

MISSISSAUGA, ONTARIO--(Marketwire - Oct. 4, 2012) - easyhome Ltd. (TSX:EH) ("easyhome" or the "Company"), Canada's largest merchandise leasing company and a growing provider of financial services, today announced it has entered into a new $20 million credit facility with Crystal Financial LLC as Administrative Agent to support the growth of easyhome's consumer finance business, easyfinancial Services. In conjunction with this financing, the Company has amended the terms and extended the maturity date of its revolving operating facility with a syndicate of banks. These actions, when taken together, will provide the Company with the capital necessary to achieve its growth objectives as it continues to build upon positive momentum in its easyfinancial Services business.

The Company launched easyfinancial Services in 2006 to provide term financing to consumers who are looking for credit alternatives that are more readily accessible than banks and less costly than payday loans. Over the past 24 months, easyfinancial Services has tripled the size of its consumer loans receivable portfolio to $60 million at September 30, 2012. The additional capital secured today will allow easyfinancial Services to continue its growth and build upon its leadership position as an alternative provider of term financing to consumers.

The new five (5) year credit facility is comprised of a $20 million term loan and will provide the capital necessary to continue growing the consumer loans receivable portfolio. Borrowings are at 10.50% over the Canadian Bankers' Acceptance rate and are secured by a first charge on the assets of the Company's wholly-owned subsidiary, easyfinancial Services Ltd., and a second charge on substantially all of the other assets of the Company and its subsidiaries. The term loan allows for up to $10 million of increased borrowings as the consumer loans receivable portfolio grows, subject to lender approval.

Concurrently, the Company revised the terms of its existing revolving facility with a syndicate of Canadian banks to allow for the new easyfinancial Services term loan and to extend the revolving facility's maturity date to October 4, 2015. The revised and extended revolving facility has a maximum limit of $35 million, reducing to $30 million on October 5, 2013, and will bear interest at the lead lender's prime rate plus 150 to 250 bps, depending on the Company's total debt to EBITDA ratio. The revolving facility is fully secured by a first charge on substantially all of the assets of the Company and its subsidiaries, excluding easyfinancial Services Ltd., and a second charge on the assets of easyfinancial Services Ltd. Canadian Imperial Bank of Commerce continues as the lead arranger and lender and the continuing other members of the syndicate are National Bank of Canada and Laurentian Bank of Canada.

"Crystal Financial has worked hard to develop a financing package that meets the needs of easyhome. The new term loan will allow us to capture more of the demand for alternative sources of consumer financing in the Canadian marketplace and continue growing our financial services businesses," said Steve Goertz, easyhome's Chief Financial Officer. "Additionally, we are pleased that CIBC and our other banking syndicate partners continue to have confidence in our business, as demonstrated by accommodating the new term loan and extending our current banking relationship for a further two year period."

Steven Migliero, Senior Managing Director of Crystal Financial commented, "We are pleased to act as agents on this new term loan facility for easyfinancial Services, which provides additional loan capacity for management to execute on an important strategic initiative. With this new financing commitment, we believe the Company will be well positioned as an industry leader." Added Christopher Arnold, Managing Director of Crystal Financial, "easyfinancial Services provides consumer loans to an underserved segment of the Canadian marketplace. We are particularly impressed with the management team, their systems and the prospects for growth that our new capital will support."

About easyhome

As of October 4th, easyhome Ltd. operated 206 easyhome leasing stores (including 8 consolidated franchise locations), 101 easyfinancial locations and had 47 franchise locations.

easyhome Ltd. is Canada's largest merchandise leasing Company and the third largest in North America, offering top quality, brand-name household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. In addition, the Company offers a variety of financial services, including loans and prepaid cards, through its easyfinancial Services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.

About Crystal Financial

Crystal Financial is an independent commercial finance company that provides senior and junior secured term asset-based and cash flow loans ($10 million to $150 million) to middle market companies, either as a direct lender or in partnership with banks, other ABL lenders or private equity investors. The company has a unique ability to lend on alternative or unusual assets such as intellectual property or brand names. Its team of experienced, responsive professionals have underwritten, closed and managed more than $20 billion in secured debt commitments across a wide range of industries. For more information, please visit www.crystalfinco.com.