Crystal Financial Agents New Facility for easyhome
easyhome, a Canadian merchandise leasing company and a provider of financial services, announced it has entered into a new $20 million credit facility with Crystal Financial, as administrative agent to support the growth of easyhome’s consumer finance business, easyfinancial Services.
The new five-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, 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.
In conjunction with this financing, the company said it 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.
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.”