goeasy driving by with $320 million five-year notes; initial guidance in mid-4% area

By Paul A. Harris

Portland, Ore., April 22 – goeasy Ltd. plans to price a $320 million offering of five-year senior notes (existing ratings Ba3/BB-) in a Thursday drive-by, according to market sources.

Initial guidance has the deal coming to yield in the mid-4% area, a trader said.

BMO is leading the offering.

The notes come with two years of call protection.

The Mississauga, Ont.-based financial services provider to the non-prime sector plans to use the proceeds, along with proceeds from the bought deal equity offering of 1,404,265 subscription receipts of the company, to fund the cash portion of the $310 million acquisition of LendCare Holdings Inc. and to repay $243.5 million of existing LendCare debt, with the balance to be used for general corporate purposes.

Pending completion of the acquisition the proceeds will be escrowed in an account in the name of the company but controlled by, and pledged in favor of, Deutsche Bank Trust Co. Americas, as indenture trustee, on behalf of the holders of the notes, pending satisfaction of conditions to release of the proceeds.

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