...June 13, 2019 TORONTO (S&P Global Ratings) June 13, 2019--S&P Global Ratings today said it assigned its '##' issue-level rating and '3' recovery rating to Bombardier Recreational Products Inc.'s (BRP; ##/Stable/--) proposed US$335 million add-on issuance to the company's existing term loan B. Even though the issue-level and recovery ratings are unchanged on the existing term loan, we have revised our recovery estimate on the secured debt to 50% from 55%. This revision reflects higher senior secured claims under a simulated default scenario because the existing senior secured term loan ranks pari passu with the proposed incremental term loan issuance. Since the recovery estimate is at the lower end of the '3' recovery rating, any additional secured debt (upsized asset-based loan [ABL] or term loan) could cause us to revise the recovery ratings to '4'. We expect the company to use the proceeds to fund its proposed C$300 million substantial issuer bid and for general corporate purposes. The...
