VALCOURT, QUEBEC, CANADA – December 15, 2022 – (Motor Sports NewsWire) – BRP Inc. (TSX: DOO, NASDAQ: DOOO) announced today that it obtained an incremental US$500 million term loan from certain new and existing lenders under its term loan credit agreement, which proceeds allowed the full repayment of the existing US$100 million term loan B-2 due 2024 and are also expected to be used to repay the drawn balance under BRP’s revolving credit facility, and to pay fees and expenses related to the financing.
“On the heels of the completion of three strategic acquisitions in recent months, we are pleased to have closed this opportunistic transaction which supports our sustained investments in our long-term growth,” said Sébastien Martel, Chief Financial Officer at BRP. “Moreover, this incremental term loan strengthens our balance sheet by extending the maturity profile of our capital structure and by replenishing availability on our revolver, positioning us well to continue creating value for our stakeholders.”
The new term loan tranche bears interest at a rate of Term SOFR plus 3.50%, with a Term SOFR floor of 0.5%, and matures on December 13, 2029. Pursuant to this refinancing, the amount outstanding under the Company’s Term Facility (including its Term Loan B-1) will be US$1,981 million. Consistent with the existing credit agreements of the Company, the incremental US$500 million term loan is exempt of financial covenants.
About BRP
We are a global leader in the world of powersports products, propulsion systems and boats built on 80 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats, Manitou pontoons and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft. We complete our lines of products with a dedicated parts, accessories and apparel portfolio to fully enhance the riding experience. With annual sales of CA$7.6 billion from over 120 countries, our global workforce includes close to 20,000 driven, resourceful people.
Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
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