BRP ANNOUNCES THE REPRICING OF ITS TERM LOAN B-2

Rhea-AI Summary

BRP Inc. successfully reprices Term Loan B-2, reducing interest rate.

Positive

• BRP Inc. has successfully repriced its US$ 496 million Term Loan B-2 tranche, resulting in a reduction of the average interest rate on its term facility. The applicable margin on the tranche was decreased by 75 basis points, leading to a lower rate of Term SOFR plus 2.75%. This is expected to positively impact the company's financials and potentially increase investor confidence.

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• None.

VALCOURT, QC, Oct. 4, 2023 /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO) announced today that it successfully repriced its US$ 496 million Term Loan B-2 tranche due December 2029, effectively reducing the average interest rate of its term facility.

Pursuant to this repricing, the applicable margin on the Term Loan B-2 tranche was reduced by 75 basis points, from a rate of Term SOFR plus 3.50% to a rate of Term SOFR plus 2.75%. The other terms and conditions remained the same, including the maturity date of December 13, 2029.

About BRP
BRP Inc. is a global leader in the world of powersports products, propulsion systems and boats built on over 80 years of ingenuity and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats, Manitou pontoons and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds. The Company completes its lines of products with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience. Committed to growing responsibly, BRP is developing electric models for its existing product lines and exploring new low voltage and human assisted product categories. Headquartered in Quebec, Canada, BRP has annual sales of CA$10 billion from over 130 countries and a global workforce of close to 23,000 driven, resourceful people.

www.brp.com
@BRPNews

Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex, and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.

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SOURCE BRP Inc.

FAQ

What is the news about?

The news is about BRP Inc. successfully repricing its Term Loan B-2, which has resulted in a reduction of the average interest rate on its term facility.

What is the new interest rate?

The new interest rate on the Term Loan B-2 tranche is Term SOFR plus 2.75%.

How much was the interest rate reduced by?

The interest rate was reduced by 75 basis points.

What is the impact of the repricing?

The repricing is expected to positively impact BRP Inc.'s financials and may increase investor confidence.

What are the other terms and conditions of the loan?

The other terms and conditions, including the maturity date, remained the same.

What is the maturity date of the loan?

The maturity date of the loan is December 13, 2029.