By Adriano Marchese
Goeasy has reached a set of amended financing agreements with its lenders, stabilizing its funding base after a sharp deterioration in fourth-quarter credit performance.
The embattled provider of nonprime consumer lending said Tuesday that it has obtained covenant waivers for the fourth quarter and adjustments to future financial tests across its major credit facilities, allowing it to remain in compliance despite a wave of charge-offs and writedowns.
Goeasy said its 550 million Canadian dollar ($400.8 million) syndicated revolver remains in place but now carries a 100-basis-point-higher interest spread and a borrowing-base cap that limits availability to C$440 million without lender consent.
Additionally, the consumer securitization warehouse facility will decrease to C$1.12 billion from C$1.4 billion, also with a 100-basis-point spread increase and tighter eligibility rules.
Earlier this month, Goeasy warned that it expects to take an additional C$178 million in charge-offs for the fourth quarter, tied to a C$5.5 billion consumer loan book at year-end. It also anticipates a related C$55 million writedown on loan interest and fees. Taken together, those hits would lift total net charge-offs for the quarter to roughly C$331 million, marking a sharp step-up in credit losses heading into 2026.
The update sent the shares 57% lower on March 10, reaching a 52-week low in recent trading. The stock is currently down 75% in the past year.
In total, Goeasy said it now has up to C$983 million in liquidity, though C$743 million of that won't be accessible until July 2026 under the amended terms.
For the fourth quarter, the company expects to report that it has generated about C$536 million in operating cash flow before net principal written.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 24, 2026 08:21 ET (12:21 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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