Non-prime consumer lender goeasy exercised the accordion feature of its existing senior secured revolving credit facility to increase the maximum amount available under the facility by $100 million to $370 million while maintaining the current interest rate payable on advances. The credit facility continues to be underwritten by BMO, Royal Bank of Canada, Wells Fargo Bank, CIBC, National Bank of Canada and TD Bank.
In addition, the company received approval from a Canadian insurance company for $150 million of additional financing, which will be collateralized by consumer loans originated by goeasy’s wholly-owned subsidiary, LendCare Capital.
These enhancements complement the company’s existing $1.6 billion revolving securitization warehouse facilities. The company will use the additional funding for general corporate purposes, including funding growth of its consumer loan portfolio, further extending the liquidity of the company. The company also remains confident that the capacity available under its existing funding facilities — and its ability to raise additional debt financing — is sufficient to fund its organic growth forecast.