Ontario-based goeasy ups securitization facility by C$500 million

Ontario-based nonprime consumer lender goeasy Ltd. hiked its existing revolving securitization warehouse facility to C$1.4 billion from C$900 million, or an increase of C$500 million, which also included modifications in eligibility criteria for consumer loans and pool concentration limits.

National Bank Financial Markets, Bank of Montreal and Royal Bank of Canada will continue to be part of the lending syndicate, and interest on advances will be paid at the rate of one-month Canadian dollar offered rate plus 185 basis points. The interest rate will be 4.08% based on the current one-month Canadian dollar offer rate of 2.23% as of June 30, according to a news release.

Further, the company will continue with an interest rate swap agreement to generate fixed-rate payments on the amounts drawn to mitigate the impact of rising interest rates.

The proceeds from the securitization facility will be used for general corporate purposes and drive the company's consumer loan portfolio.

The increase in funding capacity will provide the company with almost C$1.1 billion in forward liquidity, which will be instrumental to fund organic growth into the second quarter of 2025, according to goeasy President and CEO Jason Mullins.