BRP, Inc. ("BRP" or the "Company") announced that it has obtained a receipt for its final base PREP prospectus filed with the securities regulatory authorities in each of the provinces and territories of Canada and has entered into an underwriting agreement for the initial public offering of 12,200, 000 subordinate voting shares of the Company at a price of $21.50 per share. Based on the initial public offering price, the Company's market capitalization will be approximately $2.5 billion.
The initial public offering will generate gross proceeds to the Company of approximately $262,300, 000. The Company intends to use the net proceeds from the offering to repay indebtedness under the Company's term facility.
The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the Company's subordinate voting shares subject to fulfilling the customary TSX requirements. The Company's subordinate voting shares will trade under the symbol "DOO". The closing is scheduled for May 29, 2013, subject to customary closing conditions.
The underwriters have also been granted an over-allotment option to purchase up to an additional 1,830, 000 subordinate voting shares from the Company at a price of $21.50 per share for additional gross proceeds of $39,345, 000 if the option is exercised in full. The over-allotment option can be exercised for a period of 30 days from the closing date. If the over-allotment is exercised by the underwriters, the Company will use the additional net proceeds for working capital and general corporate purposes.
The offering is being made through a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, UBS Securities Canada Inc., Citigroup Global Markets Canada Inc., acting as joint bookrunners, and including Wells Fargo Securities LLC, CIBC World Markets Inc., Desjardins Securities Inc., Scotia Capital Inc., National Bank Financial Inc. and Robert W. Baird & Co. Incorporated.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.
BRP (brp.com) is a global leader in the design, development, manufacturing, distribution and marketing of powersports vehicles. Distributed in 105 countries, its portfolio of brands and products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am all-terrain and side-by-side vehicles, Spyder roadsters, Evinrude outboard engines, as well as Rotax propulsion systems. BRP employs approximately 6,800 people worldwide. Sea-Doo, Ski-Doo, Spyder, Lynx, Evinrude, Can-Am, Rotax and the BRP logo are trademarks of Bombardier Recreational Products Inc. (a subsidiary of the Company) or its affiliates.
Certain statements in this press release, including statements relating to the use of proceeds of the offering, the closing date of the offering, the exercise of the over-allotment and the use of proceeds thereof constitute forward-looking statements. The words "scheduled","may","will","would","should","could","expects","plans","intends","trends","indications","anticipates","believes","estimates","predicts","likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. In particular, the closing of the offering and use of proceeds thereof is subject to customary closing conditions and there can be no assurance that all such conditions will be satisfied. Many factors could cause the Company's actual results or affairs to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the final base PREP prospectus available at sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities regulations.