BRP launches $600 million term loan B-2 at Libor plus 550 bps

By Sara Rosenberg

New York, May 1 – BRP Inc. (Bombardier Recreational Products Inc.) launched with its lender call on Friday its $600 million term loan B-2 due May 24, 2027 at price talk of Libor plus 550 basis points with a 1% Libor floor and an original issue discount of 96 to 97, according to a market source.

The term loan has call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and TD Securities (USA) LLC are the joint lead arrangers on the deal.

Commitments are due by the end of the day on Wednesday, the source added.

Proceeds will be used for general corporate purposes.

The company has an existing $1.2 billion term loan B priced at Libor plus 200 bps with a 0% Libor floor.

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

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