VALCOURT,
QC, Jan. 22, 2024 /CNW/ - BRP Inc. (TSX: DOO)
(NASDAQ: DOOO) announced today that it successfully amended and
extended a substantial portion of its term loan facility,
effectively extending U.S. $1,000
million of debt maturities from 2027 to 2031.
"Proactively addressing our debt maturities is an
important strategy behind our commitment to preserve a strong
balance sheet, and further increases our flexibility to operate and
invest for the long-term growth of the Company," said Sébastien
Martel, Chief Financial Officer of BRP.
As part of this leverage-neutral amendment, the
Company issued a new U.S. $1,000
million Term Loan B-3 from certain new and existing lenders,
bearing interest at a rate of 275 basis points over Term SOFR with
a Term SOFR floor of 0.0% and maturing in January 2031. The proceeds from this incremental
Term Loan B-3 were used to repay a portion of the original Term
Loan B-1 due May 2027. The amount
outstanding under the Term Loan B-1 decreases from U.S.
$1,466 million to U.S. $466 million, with all other terms unchanged
including the applicable interest of 200 basis points over Term
SOFR with a Term SOFR floor of 0.0%. The other Term Loan B-2 due
2029 remains unchanged and all loans outstanding under the Term
Loan B facility remain exempt of financial covenants.
About BRP
BRP Inc. is a global leader in the world of
powersports products, propulsion systems and boats built on over 80
years of ingenuity and intensive consumer focus. Through its
portfolio of industry-leading and distinctive brands featuring
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, BRP unlocks exhilarating adventures and
provides access to experiences across different playgrounds. The
Company completes its lines of products with a dedicated parts,
accessories and apparel portfolio to fully optimize the riding
experience. Committed to growing responsibly, BRP is developing
electric models for its existing product lines and exploring new
low voltage and human assisted product categories. Headquartered in
Quebec, Canada, BRP has annual
sales of CA$10 billion from over 130 countries and a global
workforce of close to 23,000 driven, resourceful people.
www.brp.com
@BRPNews
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.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTS
Certain statements in this press release,
including statements relating to the expected impact of this term
facility amendment on the Company's ability to preserve a strong
balance sheet and to increase its flexibility to operate and invest
for its long-term growth and other statements that are not
historical facts, constitute forward-looking statements within the
meaning of applicable securities laws. The words "may", "will",
"would", "should", "could", "expects", "forecasts", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "outlook", "predicts", "projects", "likely" or
"potential" or the negative or other variations of these words or
other comparable words or phrases, are intended to identify
forward-looking statements. Forward-looking statements, by their
very nature, involve inherent risks and uncertainties and are based
on a number of assumptions, both general and specific. The Company
cautions that its assumptions may not materialize and that current
economic conditions render such assumptions, although believed
reasonable at the time they were made, subject to greater
uncertainty. Such forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties and other factors, including, without limitation, the
risk factors discussed in greater detail under the heading "Risk
Factors" of its Annual Information Form dated March 22, 2023. The forward-looking statements
contained in this press release are made as of the date of this
press release, and the Company has no intention and undertakes no
obligation to update or revise any forward-looking statements to
reflect future events, changes in circumstances, or changes in
beliefs, unless required by applicable securities regulations. In
the event that the Company does update any forward-looking
statements contained in this press release, no inference should be
made that the Company will make additional updates with respect to
that statement, related matters or any other forward-looking
statement. The forward-looking statements contained in this press
release are expressly qualified by this cautionary statement.
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SOURCE BRP Inc.