By Paul A. Harris
Portland, Ore., April 22 – goeasy Ltd. priced a $320 million issue of 4 3/8% five-year senior notes (Ba3/BB-) in a Thursday drive-by, according to market sources.
Price talk was 4¼% to 4½%. Initial guidance was in the mid-4% area.
BMO was the lead.
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 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.
| Issuer: | goeasy Ltd.
|
| Amount: | $320 million
|
| Tenor: | Five years
|
| Securities: | Senior notes
|
| Lead: | BMO
|
| Coupon: | 4 3/8%
|
| Call protection: | Two years
|
| Trade date: | April 22
|
| Settlement date: | April 29
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4¼% to 4½%
|
| Marketing: | Drive-by
|
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