BRP announces CA$400m increase of its revolving credit facility and an incremental US$100m term loan
by BRP 15 Jun 2022 16:52 PDT
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BRP (TSX:DOO; NASDAQ:DOOO) announces today that it increased total available commitments under its revolving credit facility by CA$400 million to reach CA$1.5 billion in total and obtained an incremental US$100 million term loan from certain existing lenders under its term loan credit agreement.
"We are pleased to have been able to complete these transactions that strengthen our liquidity position. Our ability to complete these transactions reflects the strong momentum we have experienced during our fiscal year completed on January 31, our first quarter of the current fiscal year and the solid outlook we have for our business," said Sébastien Martel, Chief Financial Officer at BRP. "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."
The costs of borrowing under the revolving credit agreement remain unchanged. The new term loan tranche bears interest at a rate of Term SOFR (defined as the forward-looking term rate based on SOFR plus a credit spread adjustment) plus 3.0%, with a Term SOFR floor of 0.5%, and matures on June 10, 2024. Pursuant to this financing, the amount outstanding under the Company's Term Facility (including its Term Loan B-1) will be US$1,588.6 billion. The proceeds of the incremental US$100 million term loan will be used for general corporate purposes and to pay fees and expenses related to the financing.
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