Features

BRP looks for influx of capital to reduce debt

Bombardier Recreational Products (BRP) is trying to raise between $40 and $80 million in new capital to reduce its overall debt, the company reported in a recent release. Contributions would come from shareholders and other institutional sources.

However, as a result of BRP seeking an amendment allowing it to use new funding to repurchase debt at a discount, Standard & Poor’s (S&P) lowered BRP’s long-term corporate credit rating from B-minus to CCC-plus. Last month, S&P lowered BRP’s long-term corporate credit rating from B to B-minus.

BRP disputes S&P’s decision, saying it is based on overly rigid guidelines that do not appropriately incorporate BRP’s particular situation.

“This is not a distressed debt offer,” BRP said in the release. “The proposed amendment to allow for repurchases of a portion of its term loan at a discounted rate with new capital reflects the management’s motivation to reduce its debt levels, providing significant benefits to all stakeholders. BRP is hopeful that S&P will re-evaluate its rating when BRP demonstrates the positive results of the debt repurchases by further improving the Company’s overall credit profile.”

  • To return to the current issue, click here.
  • For more of the latest news, click here.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
EPG Brand Acceleration
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.