BRP increases revolver by C$400 million, adds $100 million incremental term loan

By Wendy Van Sickle

Columbus, Ohio, June 14 – BRP Inc. (Bombardier Recreational Products Inc.) increased total commitments under its revolving credit facility by C$400 million to C$1.5 billion and obtained an incremental $100 million term loan from some existing lenders under its term loan agreement, according to a news release Tuesday.

The revolver’s interest rate is unchanged.

The new term loan tranche bears interest at term SOFR plus 300 basis points with a term SOFR floor of 0.5%. It matures on June 10, 2024.

As a result of this financing, the amount outstanding under the company’s term facility, including its term B-1 loan, will be $1,588,600,000.

Proceeds of the incremental loan will be used for general corporate purposes and to pay fees and expenses related to the financing.

“We are pleased to have been able to complete these transactions that strengthen our liquidity position,” Sebastien Martel, chief financial officer at BRP, said in the release. “Our ability to complete these transactions reflects the strong momentum we have experienced during our fiscal year completed on Jan. 31, our first quarter of the current fiscal year and the solid outlook we have for our business.

“With our strengthened balance sheet, we are well positioned to continue creating value for our shareholders through sustained investments in our long-term growth and strategic capital deployment.”

BRP is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

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