WILDING – STOCK.ADOBE.COMBombardier Recreational Products this week announced it obtained an incremental $500 million term loan from new and existing lenders under its term loan credit agreement. The funding allows the full repayment of an existing $100 million term loan due in 2024. Additionally, it is expected to be used to repay BRP’s revolving credit line 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,” Sebastien Martel, chief financial officer at BRP, said in a statement. “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.”
BRP says the new term loan tranche bears interest at a rate of the term secure overnight financing rate plus 3.5% with a floor of .5% and a maturation date of Dec. 13, 2029. Pursuant to the refinancing, the amount outstanding under the company’s term facility will be $1.92 billion. Consistent with the existing credit agreements of the company, the $500 million term loan is exempt of financial covenants.
