BRP extends $1 billion debt maturity to 2031 By Investing.com

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<p>VALCOURT, QC – BRP (NASDAQ:) Inc. (TSX: DOO) (NASDAQ: DOOO), a global leader in powersports products and propulsion systems, has successfully renegotiated the terms of its significant debt, extending the maturity of $1 billion from 2027 to 2031. The move is part of the company’s strategy to maintain a robust balance sheet and enhance operational flexibility for long-term growth.</p>
<p>Sébastien Martel, the Chief Financial Officer of BRP, emphasized the proactive approach to managing the company’s debt profile. The amendment involves issuing a new $1 billion Term Loan B-3 to select lenders, with an interest rate of 275 basis points over Term SOFR and a maturity date in January 2031. The proceeds from this new loan were utilized to repay part of the original Term Loan B-1, which was due in May 2027. Consequently, the outstanding balance under Term Loan B-1 has been reduced from $1.466 billion to $466 million, while the terms, including the interest rate of 200 basis points over Term SOFR, remain unchanged.</p>
<p>The company’s other Term Loan B-2, due in 2029, is not affected by this amendment. All loans under the Term Loan B facility continue to be exempt from financial covenants, providing BRP with further financial leeway.</p>
<p>BRP’s portfolio includes well-known brands such as Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on and off-road vehicles, and Rotax engines for karts and recreational aircraft. The company, with a workforce of nearly 23,000, reported annual sales of CA$10 billion ($1 = CA$1.34) and operates in over 130 countries.</p>
<p>This news is based on a press release statement from <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> BRP Inc </span></span>.</p>
<h2>InvestingPro Insights</h2>
<p>In light of BRP Inc.’s recent strategic debt restructuring, a glance at the company’s financial health and market performance through InvestingPro’s lens offers valuable insights. With a robust Piotroski Score of 9, BRP Inc. demonstrates strong financial conditions, which may reassure investors about the company’s balance sheet integrity post-restructuring. The management’s confidence is further underscored by their aggressive share buybacks, a move often interpreted as a bullish signal on the company’s valuation and future prospects.</p>
<p>InvestingPro Data reveals a market capitalization of $5.2 billion and an attractive P/E ratio of 8.06, suggesting that the company is trading at a low earnings multiple. This could appeal to value investors looking for stocks with solid earnings at a relatively lower price. Additionally, BRP Inc. has been rewarding shareholders with a growing dividend, showcasing a 16.61% increase in dividend growth over the last twelve months as of Q3 2024, coupled with a consistent rise for three consecutive years.</p>
<p>For investors seeking a deeper dive into BRP Inc.’s financials and strategic insights, InvestingPro offers additional tips and metrics. By subscribing to InvestingPro, members can access a comprehensive suite of tools and analyses. The InvestingPro subscription is now on a special New Year sale with a discount of up to 50%. Plus, use coupon code <strong>SFY24</strong> for an additional 10% off a 2-year InvestingPro+ subscription, or <strong>SFY241</strong> for an additional 10% off a 1-year subscription. With 15 more InvestingPro Tips available, subscribers can equip themselves with a nuanced understanding of BRP Inc.’s market position and potential investment opportunities.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
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<br /><a href="https://www.investing.com/news/stock-market-news/brp-extends-1-billion-debt-maturity-to-2031-93CH-3279909">Source link </a></p><p>The post <a href="https://forextraderhub.com/brp-extends-1-billion-debt-maturity-to-2031-by-investing-com.html">BRP extends $1 billion debt maturity to 2031 By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>