BRP Inc. announced that it has successfully refinanced its existing credit facilities.
Following this refinancing, the principal amount advanced under the term loan facility was increased from $789 million to $900 million. The maximum principal amount available under the revolving credit facility was increased from $475 million to $575 million. The maturity date for both of the credit facilities was extended for additional periods of two years, until 2025 in the case of the term loan and until 2023 for the revolving credit facility.
The term facility was incurred at an original issue price of 99.75 percent and pricing was reduced by 50 basis points to now correspond to LIBOR plus 2 percent. Pricing on the revolving credit facility is subject to an updated leverage-based pricing grid that results in pricing of LIBOR or Bankers’ Acceptance Rate plus 1.75 percent (or at BRP’s option, Prime or Base Rate plus 0.75 percent) based on the leverage ratio in effect at closing, which constitutes a 25 basis points reduction in pricing. Other amendments made to the terms of the agreements governing the credit facilities provide additional flexibility for BRP and its operations as well as an improved ability to incur incremental term loans.
TD Securities and BMO Capital Markets acted as joint lead arrangers, and TD Securities, BMO Capital Markets, RBC Capital Markets and Citibank, N.A. acted as joint book runners, for the syndication of the term facility.
BMO Capital Markets, RBC Capital Markets and TD Securities acted as joint lead arrangers and joint book runners for the syndication of the revolving credit facility and National Bank of Canada acted as syndication agent. Bank of Montreal is acting as administrative agent for both credit facilities.
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