BRP further strengthens its balance sheet flexibility with an incremental US$500 million term loan
by BRP 13 Dec 2022 17:28 PST
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BRP (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.
For more information visit www.brp.com.