MISSISSAUGA, Ontario, Oct. 10, 2023 (GLOBE NEWSWIRE) -- goeasy Ltd. (TSX: GSY), (“goeasy” or the “Company”), one of Canada’s leading non-prime consumer lenders, announced today a $175 million increase to its existing revolving securitization warehouse facility collateralized by automotive consumer loans (the “Automotive Securitization Facility”), with the addition of Wells Fargo Bank as a new lender to the syndicate.
The Company has increased its Automotive Securitization Facility from $200 million to $375 million. The Automotive Securitization Facility, which was originally established in November 2022, will continue to be structured by Bank of Montreal, with the addition of Wells Fargo Bank as a new lender to the syndicate. The facility continues to bear interest on advances payable at the rate of 1-month Canadian Dollar Offered Rate (“CDOR”) plus 185 bps. Based on the current 1-month CDOR rate of 5.39% as of September 29, 2023, the interest rate would be 7.24%. The Company will continue utilizing an interest rate swap agreement to generate fixed rate payments on the amounts drawn to assist in mitigating the impact of increases in interest rates.
“The addition of Wells Fargo as a new lender in our automotive securitization facility serves to highlight the strength of our automotive financing program and their confidence in our future performance,” said Jason Mullins, goeasy’s President and Chief Executive Officer. “Obtaining an additional funding commitment from a leading financial institution, particularly amidst uncertain economic conditions, is a testament to the strength of our automotive credit and underwriting. Together with our other current funding facilities, this increase provides us with approximately $930 million in total funding capacity to support our growth plans.”
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 8,500 merchant partners across Canada. Throughout the Company’s history, it has acquired and organically served over 1.3 million Canadians and originated over $11.4 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 $4.9 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”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s.
For more information about goeasy and our business units, visit www.goeasy.com, www.easyfinancial.com, www.lendcare.ca, www.easyhome.ca.
For further information contact:
Jason Mullins
President & Chief Executive Officer
(905) 272-2788
Farhan Ali Khan
Senior Vice President, Chief Corporate Development Officer
(905) 272-2788
