BRP, Inc., the parent company of the Ski-Doo, Sea-Doo and Lynx powersports brands, has amended, extended and repriced a substantial portion of its term loan facility, reducing long-term debt by $200 million and extending the maturity of $265 million of debt from 2027 to 2029 and 2031. At the same time, the company stated that it had “effectively reduced the average interest rate of its term facility.”
“Proactively addressing our debt maturities continues to be an important strategy to preserve a strong balance sheet. The extended maturities and the associated repayment of a portion of our long-term debt further increase our financial flexibility to operate and invest in our long-term growth, while reinforcing our commitment to robust capital allocation practices,” said Sébastien Martel, chief financial officer, BRP, Inc.
As part of this amendment, the company prepaid the entirety of the $465 million Term Loan B-1 due May 2027, using available liquidity, an effective upsize of $88 million of the Term Loan B-2 due December 2029, and an effective upsize of $177 million of the existing Term Loan B-3 due January 2031. Concurrently, the company announced that it had successfully repriced its outstanding term loans.
Pursuant to this repricing, the applicable interest rate on the Term Loan B-2 and B-3 tranches was reduced by 50 basis points, from a rate of Term SOFR plus 2.75 percent to a rate of Term SOFR plus 2.25 percent. The other terms and conditions remain substantially the same, including the maturity dates of December 13, 2029, and January 22, 2031, respectively. All loans outstanding under the Term Loan B facility remain exempt from financial covenants.
Image courtesy BRP, Inc./Ski-Doo
