BRP announced on Friday that it has entered into an incremental $600 million term loan maturing in May 2027, further bolstering the company’s liquidity position.
“We have always been diligent in safeguarding the company’s financial flexibility, and this incremental term loan is another example of this. With our strong cash position coupled with the CA$700 million available under our revolving credit facility, we expect to have the capacity to navigate through these uncertain times while continuing to invest for the long-term growth of the company,” said Sébastien Martel, chief financial officer of BRP.
Following the completion of this transaction and after reimbursing its fully drawn revolving credit facility, the company will have approximately CA$680 million of cash on hand.
The proceeds of the incremental term loan are expected to be used for general corporate purposes and to increase the company’s liquidity position. Interest on the incremental term loan accrues at a spread to LIBOR of 5.0% with a LIBOR floor of 1.0%. Consistent with the existing credit agreements of the company, the incremental $600 million term loan is exempt of financial covenants.