GSY Goeasy Ltd

goeasy Ltd. (TSX: GSY), (“goeasy” or the “Company”), one of Canada’s leading non-prime consumer lenders, announced today enhancements to its existing revolving securitization warehouse facility (the “Securitization Facility”) and senior secured revolving credit facility (the “Credit Facility”).

The Company has announced an increase to its Securitization Facility from $600 million to $900 million. The Securitization Facility, which was originally established in December 2020, will continue to be structured by National Bank Financial Markets, with the addition of Bank of Montreal and Royal Bank of Canada as new lenders to the syndicate. The facility will continue 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 0.52% as of January 28, 2022, the interest rate would be 2.37%. The Company will continue utilizing an interest rate swap agreement to generate fixed rate payments on the amounts drawn and mitigate the impact of increases to interest rates. Proceeds from the Securitization Facility will be used for general corporate purposes, primarily funding the growth of the Company’s consumer loan portfolio.

The Company also announced an amendment to its Credit Facility, which will decrease from $310 million to $270 million, with the maturity extended to January 27, 2025 and a reduction to the interest rate payable on advances. On lenders prime rate (“Prime”) advances, the interest rate payable has been reduced by 125 bps, from the previous rate of Prime plus 200 bps to Prime plus 75 bps. On draws elected to be taken utilizing the Canadian Bankers’ Acceptance rate (“BA”), the interest rate payable has been reduced by 75 bps, from the previous rate of BA plus 300 bps to BA plus 225 bps. Based on the current Prime rate of 2.45% and the current 90-day BA rate of 0.50% as of January 28, 2022, the interest rate on the principal amount drawn would be 3.20% or 2.75%, respectively, at the option of the Company. Additionally, the amendment incorporates key modifications including improved advance rates, less restrictive covenants, and a broader syndicate of banks. The amended Credit Facility is underwritten by Bank of Montreal, Royal Bank of Canada, Wells Fargo Bank, CIBC, National Bank of Canada and Toronto-Dominion Bank, and the Company has the ability to utilize an accordion feature to increase the size of the facility by up to an additional $100 million.

“The enhancements to our funding facilities represent another key milestone in developing a scalable and diversified capital structure, while providing sufficient liquidity to fund our organic growth through the end of 2024”, said Jason Mullins, goeasy’s President and Chief Executive Officer, “With participation from 5 of the 6 major banks in Canada, the amendments lift the combined capacity close to $1.2 billion, while improving flexibility, increasing our liquidity by $260 million and reducing our fully drawn weighted average cost of borrowing to 4.2%. While we expect interest rates to rise in the future, the material shift in our funding to lower cost secured sources, combined with the fixed rate nature of our unsecured notes and the hedging we implement on each draw, conspires to provide a shelter against an increase in rates. The strength and diversification of our balance sheet continues to remain well capitalized to achieve our long-term growth objectives.”

About goeasy

goeasy Ltd., a Canadian company, headquartered in Mississauga, Ontario, provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by more than 2,200 employees, the Company offers a wide variety of financial products and services including unsecured and secured instalment loans. Customers can transact seamlessly through an omni-channel model that includes an online and mobile platform, over 400 locations across Canada, and point-of-sale financing offered in the retail, power sports, automotive, home improvement and healthcare verticals, through more than 4,000 merchants across Canada. Throughout the Company’s history, it has acquired and organically served over 1 million Canadians and originated over $7.2 billion in loans, with one in three easyfinancial customers graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.

Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards including Waterstone Canada’s Most Admired Corporate Cultures, Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces in North America, Greater Toronto Top Employers Award, the Digital Finance Institute’s Canada’s Top 50 FinTech Companies, ranking on the TSX30 and placing on the Report on Business ranking of Canada’s Top Growing Companies and has been certified as a Great Place to Work®. The company is represented by a diverse group of team members from over 75 nationalities who believe strongly in giving back to the communities in which it operates. To date, goeasy has raised and donated over $3.8 million to support its long-standing partnerships with BGC Canada, Habitat for Humanity 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. Visit www.goeasy.com.

For further information contact:Jason MullinsPresident & Chief Executive Officer(905) 272-2788

Farhan Ali KhanSenior Vice President and Chief Corporate Development Officer(905) 272-2788