BRP amends, extends term loans

Ms. Emilie Proulx reports BRP ANNOUNCES THE AMENDMENT, PARTIAL REPAYMENT, EXTENSION AND REPRICING OF ITS TERM LOANS BRP Inc. successfully amended, extended and repriced a substantial portion of its term loan facility, reducing long-term debt by $200-million (U.S.) and extending the maturity of $265-million (U.S.) of debt from 2027 to 2029 and 2031. At the same time, the company effectively reduced the average interest rate of its term facility. "Pro-actively 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 Sebastien Martel, chief financial officer of BRP. As part of this amendment, the company prepaid the entirety of the $465-million (U.S.) term loan B-1 due May, 2027, using available liquidity, an effective upsize of $88-million (U.S.) of the term loan B-2 due December, 2029, and an effective upsize of $177-million (U.S.) of the existing term loan B-3 due January, 2031. Concurrently, the company 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 (secured offered financing rate) plus 2.75 per cent to a rate of term SOFR plus 2.25 per cent. The other terms and conditions remain substantially the same, including the maturity dates of Dec. 13, 2029, and Jan. 22, 2031, respectively. All loans outstanding under the term loan B facility remain exempt of financial covenants. About BRP Inc. BRP is a global leader in the world of powersports products, propulsion systems and boats built on over 80 years of ingenuity and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on- and off-road vehicles, Quintrex boats, and Rotax marine propulsion systems, as well as Rotax engines for karts and recreational aircraft, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds. The company completes its lines of products with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience. Committed to growing responsibly, BRP is developing electric models for its existing product lines. Headquartered in Quebec, Canada, BRP had annual sales of $7.8-billion (Canadian) from over 130 countries and employed approximately 16,500 driven, resourceful people as of Jan. 31, 2025.