BRP ANNOUNCES THE AMENDMENT, PARTIAL REPAYMENT, EXTENSION AND REPRICING OF ITS TERM LOANS

Executive Summary

• BRR Inc. amended and repriced its term loan facility, reducing long‑term debt by US $200 million.
• Maturity of US $265 million of debt was extended from 2027 to 2029 and 2031, enhancing financial flexibility.
• Interest rates on Term Loan B‑2 and B‑3 were lowered by 50 basis points (to SOFR + 2.25%).

Key Details

• Prepaid the full US $465 million Term Loan B‑1 (due May 2027) using available liquidity.
• Upsized Term Loan B‑2 by US $88 million (new total unspecified) with maturity extended to December 13, 2029.
• Upsized Term Loan B‑3 by US $177 million (new total unspecified) with maturity extended to January 22, 2031.
• Reduced average interest rate on the term facility; B‑2 and B‑3 rates cut from SOFR + 2.75% to SOFR + 2.25%.
• All loans under the Term Loan B facility remain exempt from financial covenants.
• CFO Sébastien Martel highlighted that the actions preserve a strong balance sheet and increase flexibility for growth investments.

Notable Quotes

“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,” – Sébastien Martel, Chief Financial Officer, BRP.