goeasy Ltd. Announces Amended Financing Arrangements

Executive Summary

• goeasy Ltd. entered into definitive agreements amending its $550 M syndicated revolving credit facility, its $1.4 B consumer securitization warehouse facility (reduced to $1.12 B), and related loan purchase‑sale arrangements.
• Financial covenant waivers for Q4 2025 were granted and interest spreads on both facilities increased by 100 bps.
• The amendments give goeasy up to $983 M of total liquidity (cash + unused borrowing capacity) and support continued execution of its growth priorities.

Key Details

• Facilities Amended
• Syndicated revolving credit facility: remains $550 M, matures July 2027; availability subject to borrowing‑base test, advance rates, and exclusion of LendCare loan receivables; interest spread raised from 225 bps to 325 bps.
• Consumer securitization warehouse facility: reduced from $1.4 B to $1.12 B, matures Oct 30 2026; eligibility criteria now exclude LendCare loans; interest spread raised from 210 bps to 310 bps.
• Covenant Adjustments
• Waiver of certain Q4‑2025 financial covenants; covenants amended to reflect expected charge‑offs, write‑downs and other adverse items for that quarter.
• Post‑amendment, goeasy is in full compliance with all covenants under the facilities and expects continued compliance after FY 2025 results are released.
• Loan Purchase & Sale Agreements
• Primary securitization counterparty waived any termination event, allowing existing loans to remain in the facility and amortize per terms.
• As of Dec 31 2025: $81.4 M reflected as Secured Borrowings vs. $177 M of loan receivables in the warehouse; another LPA shows $7.4 M secured borrowings, also in compliance.
• Auto Securitization Warehouse
• No new definitive agreement; facility previously suspended, all amounts repaid and loans transferred back to goeasy.
• Senior Unsecured Notes
• Company will use cash on hand to repay $64.6 M of senior unsecured notes maturing May 1 2026.
• Liquidity Position
• Cash on hand: $240 M (as of Feb 28 2026).
• Aggregate drawn amounts: $927 M.
• Total liquidity (cash + unused borrowing capacity): up to $983 M, of which $743 M becomes available after July 1 2026 under the amended terms.
• Operating Cash Flow Outlook
• For Q4 2025 (three months ended Dec 31 2025), goeasy expects to report:
  • ~$536 M cash provided by operating activities before net principal written (≈ $229 M cash used in operations + $765 M net principal written).
  • Net principal written of $765 M (gross originations $952 M less $187 M repayments).
• Earnings Call Announcement
• Q4 2025 results to be released after market close on Tue, Mar 31 2026.
• Conference call scheduled for Wed, Apr 1 2026 at 8:00 a.m. ET (Toronto local number and toll‑free options provided).

Notable Quotes

“The Facilities, as amended by the Definitive Agreements, together with the strong cash flow generation of the business, provide goeasy with the liquidity to continue executing on our priorities,” – Felix Wu, Chief Financial Officer, goeasy Ltd.