BRP, Inc., the parent of the Ski-Doo, Sea-Doo and Lynx power sports brands, amended and extended a substantial portion of its term loan facility, extending its “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, BRP, Inc. 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 percent 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, which is due May 2027. The amount outstanding under 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 percent. The other Term Loan B-2 due 2029 remains unchanged, and all loans outstanding under the Term Loan B facility remain exempt from financial covenants.
Image courtesy of Sea-Doo
