goeasy closes upsized US$450 million and C$175 million notes offerings

MISSISSAUGA, Ontario - Canadian consumer lender goeasy Ltd. (TSX:GSY), a $2.73 billion market cap company currently offering a 4.53% dividend yield according to InvestingPro data, announced Wednesday it has closed its previously announced offering of senior unsecured notes, which was upsized due to strong market demand.

The company completed the issuance of US$450 million in senior unsecured notes due 2031, increased from the initially offered US$400 million, and C$175 million of 6.000% senior unsecured notes due 2030, up from the original C$100 million offering. InvestingPro analysis indicates the company’s overall financial health score is currently rated as weak, suggesting careful monitoring of its debt management may be warranted.

The Canadian dollar notes were issued at C$997.50 per C$1,000 principal amount and will be treated as a single series with the company’s existing 6.000% notes issued in November 2024, bringing the total outstanding to C$325 million.

In connection with the U.S. dollar notes offering, goeasy entered into a currency swap agreement that reduces the effective borrowing cost on those notes to 6.106% per annum from the 6.875% coupon rate.

"The increases to both the U.S. dollar and Canadian dollar denominated issuances reflected strong market demand and confidence in our business," said Hal Khouri, goeasy’s Executive Vice President and Chief Financial Officer, in the press release.

The company plans to use the proceeds to partially repay secured facility debt and for general corporate purposes. According to the announcement, the financing raises goeasy’s total funding capacity to C$2.3 billion.

goeasy Ltd. provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands, offering financial products including unsecured and secured installment loans and merchant financing across Canada. The company has maintained dividend payments for 18 consecutive years, with increases in the last 3 years, according to InvestingPro, which offers additional insights and metrics about the company’s financial performance.

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