Bombardier Recreational Products Inc. (BRP)
April 02, 2009 14:12 ET
BRP Takes Positive Steps to Improve Its Balance Sheet; Disputes S&P's Decision to Downgrade
VALCOURT, QUEBEC--(Marketwire - April 2, 2009) - Bombardier Recreational Products Inc. ("BRP") is taking measures to raise between CA $50 to $100 million of new capital with a goal of reducing its overall debt. Funding should come from BRP's shareholders, as well as contributions from other institutional sources.
However, Standard & Poor's Ratings Services ("S&P") has just lowered BRP's long-term corporate credit rating in response to its seeking of an amendment allowing the Company to use its new funding to repurchase debt at a discount.
BRP believes that S&P's decision is based on overly rigid guidelines that do not appropriately incorporate BRP's particular situation. This is not a distressed debt offer. 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.
BRP's management team and shareholders continue to strongly support the business because of BRP's solid operating fundamentals, and leading market positions and brands.
Bombardier Recreational Products Inc. (BRP), a privately-held company, is a world leader in the design, development, manufacturing, distribution and marketing of motorised recreational vehicles. Its portfolio of brands and products includes: Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and sport boats, Evinrude and Johnson outboard engines, direct injection technologies such as E-TEC, Can-Am all-terrain vehicles and roadsters, as well as Rotax engines and karts. With manufacturing facilities on three continents, BRP products are distributed in more than 80 countries.
Sea-Doo, Ski-Doo, Lynx, Evinrude, Johnson, Can-Am, Rotax, E-TEC and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.