BRP seeks loan to finance dividendsPosted on
Bombardier Recreational Products, the maker of jet skis and outboard motors that’s owned by Bain Capital LLC, is seeking a $1.05 billion term loan to fund a dividend and refinance debt.
“A person with knowledge of the transaction” told Bloomberg Businessweek that the debt will pay interest at 4 percentage points more than the London interbank offered rate. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
BRP is proposing to sell the loan at 99 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Royal Bank of Canada, Bank of Montreal, UBS AG and Bank of America Corp. are arranging the financing for the Valcourt, Québec- based company and commitments are due on Wednesday, the unnamed source told the publication.
The company canceled plans for the dividend loan last year, citing market conditions, and instead opted for a $125 million add-on term loan to its existing credit facility, according to data Bloomberg compiled.
Valerie Bridger, a spokeswoman for Bombardier Recreational, didn’t immediately respond to an e-mail seeking comment.
Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!
Basic subscription: Registered members get free access to 10 premium content stories each month!
Individual subscription: $29 for unlimited site access for one year.
Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.
Corporate subscription: $300 for unlimited site access for all members of a company for one year.
You may close this dialog after seconds.