Daily News: May 24, 2018

Bank of Montreal Agents BRP Facility Upsize to $1.3B


BRP refinanced its existing credit facilities. The term loan facility was increased from $789 million to $900 million and the revolving credit facility was increased from C$475 million ($369.2 million) to C$575 million ($446.8 million).

The maturity date for both of the credit facilities was extended for additional periods of two years, until 2025 in the case of the term loan and until 2023 for the revolving credit facility.

For the syndication of the term facility, TD Securities and BMO Capital Markets were joint lead arrangers, and TD Securities, BMO Capital Markets, RBC Capital Markets and Citibank were joint bookunners.

BMO Capital Markets, RBC Capital Markets and TD Securities were joint lead arrangers and joint bookrunners for the syndication of the revolving credit facility and National Bank of Canada was syndication agent.

Bank of Montreal was administrative agent for both credit facilities.

The term facility was incurred at an original issue price of 99.75% and pricing was reduced by 50 basis points to now correspond to LIBOR + 2.00%. Pricing on the revolving credit facility is subject to an updated leverage-based pricing grid that results in pricing of LIBOR or bankers’ acceptance rate plus 1.75% (or at BRP’s option, prime or base rate plus 0.75%) based on the leverage ratio in effect at closing, which constitutes a 25 basis points reduction in pricing. Other amendments made to the terms of the agreements governing the credit facilities provide additional flexibility for BRP and its operations as well as an improved ability to incur incremental term loans.

BRP a provider of powersports vehicles and propulsion systems, including products Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on- and off-road vehicles, Evinrude and Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft.