Valcourt, Québec, – BRP Inc. ("BRP" or the
"Company") filed yesterday a preliminary prospectus with the
securities regulatory authorities in each of the provinces and territories of
Canada in connection with a proposed initial public offering of its subordinate
voting shares. A copy of the preliminary prospectus will be available on SEDAR
The offering is being made through a syndicate of underwriters led by BMO
Capital Markets, RBC Capital Markets, UBS Securities Canada Inc. and Citigroup
Global Markets Canada Inc.
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 of 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
And here is a story
from the Canadian Press
Maker BRP Inc. Files For Initial Public Offering Of Shares
By: The Canadian Press
MONTREAL - The
maker of Ski-Doo snowmobiles is launching an initial public offering.
BRP Inc. says it is planning an offering of subordinate
voting shares in the Quebec-based maker of snowmobiles, personal watercraft and
The company said it believes the outlook for the industry is
positive due to the improving economic environment, growth in new product lines
and growth in international markets.
"Things are reshaping after the crisis. We think people
will want to renew with new technology and new vehicles, what not," said
Pierre Pichette, vice-president of communications and public affairs for BRP.
In addition to Ski-Doo, BRP also makes Lynx snowmobiles,
Sea-Doo watercraft and boats, Can-Am all-terrain vehicles and Evinrude outboard
BRP would not disclose how many shares it planned to sell or
how much they would cost but said that information would be available in the
BRP says it will also issue multiple voting shares to its
current owners, who will continue to have significant influence over the
The business was spun off from Bombardier Inc. (TSX:BBD.B)
in 2003 when it was sold to members of the Bombardier and Beaudoin families,
U.S. private equity firm Bain Capital and the Caisse de depot for $960 million.
The company is currently owned by a subsidiary of Bain
Capital, the Beaudier group and the Caisse. Bain owns half the equity, the
Beaudier group has a 35 per cent stake and the Caisse has 15 per cent.
Beaudier Inc. is a family-owned company controlled by
Laurent Beaudoin, who is a former CEO of Bombardier Inc. and a son-in-law of
Joseph-Armand Bombardier, the Quebec
inventor who founded the company.
BRP says the timing of the IPO is to help the company pay
down a US$146-million term loan that matures June 2013 and a US$510-million
term loan maturing in June 2016.
"We want to reduce our long-term debt," said
The prospectus, which was obtained through
DisclosureNet.com, also reveals that the company paid $376 million in special
distributions on April 13 and plans to pay an additional $155 million in
dividends to its current shareholders prior to closing the IPO.
It expects to spend about $140 million on capital projects
in the current financial year, primarily to tool up for new products.
BRP said it does not anticipate paying any dividends on its
shares after the offering.
"The company currently intends to use its earnings to
finance the expansion of its business and to reduce indebtedness. Any future
determination to pay dividends on the shares will be at the discretion of the
board of directors," the company said.
At the end of its financial year on Jan. 31, BRP had $542.4
million of cash including $444.8 million of net cash flows from its operating
The company earned $2.9 billion in revenue and a profit of
$121 million in the financial year ended Jan. 31. That compared with a revenue
of $2.65 billion and a profit of $83.5 million in the financial year ended Jan.
Based in Valcourt, Que., BRP has approximately 6,800
employees around the world.