BRP Inc., Valcourt, Québec, 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 for the company of approximately $262,300,000. BRP says it intends to use the net proceeds from the offering to repay indebtedness under the company's term facility.
BRP reports that the Toronto Stock Exchange (TSX) has conditionally approved the listing of its subordinate voting shares. Subordinate voting shares will trade under the symbol ‘DOO.' The closing is scheduled for May 29.
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, BRP says it 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.
BRP 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.