BRP Inc. announced that it has obtained a receipt for its final base PREP prospectus filed with the securities regulatory authorities in each of the provinces and territories of Canada and has entered into an underwriting agreement for the initial public offering of 12,200,000 subordinate voting shares of the Company at a price of $21.50 per share. Based on the initial public offering price, the Company's market capitalization will be approximately $2.5 billion.
The initial public offering will generate gross proceeds to the Company of approximately $262,300,000. The Company intends to use the net proceeds from the offering to repay indebtedness under the Company's term facility.
The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the Company's subordinate voting shares subject to fulfilling the customary TSX requirements. The Company's subordinate voting shares will trade under the symbol "DOO". The closing is scheduled for May 29, 2013, subject to customary closing conditions.
The underwriters have also been granted an over-allotment option to purchase up to an additional 1,830,000 subordinate voting shares from the Company at a price of $21.50 per share for additional gross proceeds of $39,345,000 if the option is exercised in full. The over-allotment option can be exercised for a period of 30 days from the closing date. If the over-allotment is exercised by the underwriters, the Company will use the additional net proceeds for working capital and general corporate purposes.
The offering is being made through a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, UBS Securities Canada Inc., Citigroup Global Markets Canada Inc., acting as joint bookrunners, and including Wells Fargo Securities LLC, CIBC World Markets Inc., Desjardins Securities Inc., Scotia Capital Inc., National Bank Financial Inc. and Robert W. Baird & Co. Incorporated.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.