Subprime Lender Goeasy Secures Debt Relief After Share Slide

Goeasy Ltd. won concessions from its lenders to keep key funding lines open after a surge in loan losses at its troubled auto lending unit sent shares and bonds tumbling, deepening scrutiny of the Canadian subprime lender’s financing model.

Bank and financing counterparties have agreed to waive certain financial covenants tied to its fourth-quarter results and amend terms on its main credit facilities, according to a statement Tuesday. The changes ensure continued access to funding after losses tied to its unit that provides autos and powersports equipment loans, LendCare Holdings, left the firm briefly out of compliance with leverage requirements.