Bombardier Recreational Products Inc. (BRP) Extends Tender Offer
Valcourt, (Quebec), Canada, June 22, 2006 - Bombardier Recreational Products Inc. ("BRP" or the "Company") is extending the tender offer expiration date for its previously announced cash tender offer relating to its 8 3/8% Senior Subordinated Notes due 2013 (CUSIP No. 09776LAC0) (the "Notes"). The tender offer, which was scheduled to expire at midnight, New York City time, on Friday, June 23, 2006, will be extended to midnight, New York City time, on Tuesday, June 27, 2006, unless further extended by the Company.
To date, holders of all US $200 million of the outstanding principal amount of the Notes have tendered their outstanding Notes and delivered related consents pursuant to the tender offer and consent solicitation described in the Offer to Purchase and Consent Solicitation Statement dated May 19, 2006 (the "Offer to Purchase"). The last day that holders of the Notes could have withdrawn tendered Notes and revoked delivered consents was as of 5:00 p.m., New York City time, on Friday, June 2, 2006. As a result, tendered Notes and delivered consents may no longer be withdrawn or revoked. BRP has entered into a supplemental indenture with U.S. Bank relating to the proposed amendments that have been approved as part of the consent solicitation.
Subject to satisfaction of the closing conditions described in the Offer to Purchase, the Company expects the new settlement date for the tender offer will be Wednesday, June 28, 2006. Based on the tender offer yield of 5.404% determined June 2, 2006, and assuming a June 28, 2006 settlement date, the total consideration to be received by the holders of the Notes will be $1,104.38 per $1,000.00 principal amount of the tendered Notes, plus accrued and unpaid interest on the tendered Notes up to, but not including, the settlement date. If the settlement date changes again in the future, BRP expects it will further adjust the total consideration by calculating such amount as of such new settlement date, but still using the same tender offer yield it announced on June 2, 2006. Any such adjustment will be announced via a press release.
As noted, the tender offer is subject to the terms and conditions set forth in the Offer to Purchase, including the execution of a new senior secured credit facility. If any of the conditions to the tender offer are not satisfied, BRP is not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered Notes, and may even terminate the tender offer.
Merrill Lynch & Co. is acting as the sole Dealer Manager and Solicitation Agent for the tender offer and the consent solicitation. The Information Agent is Global Bondholder Services Corporation. Requests for documentation should be directed to Global Bondholder Services Corporation toll-free at (866) 470 4300 or at (212) 430-3774 in the case of banks and brokerage firms. Questions regarding the tender offer and consent solicitation should be directed to Merrill Lynch & Co. at (212) 449-4914 or toll-free at (888) ML4-TNDR.
BRP, a privately-held company, is a world leader in the design, development, manufacturing, distribution and marketing of motorised recreational vehicles. Our portfolio of brands and products includes: Ski-Doo® and LynxTM snowmobiles, Sea-Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E-TEC®, Can-AmTM all-terrain vehicles, Rotax® engines and karts. Information about BRP is available at .
This release contains certain forward-looking statements with respect to our financial condition, results of operations and business. All of these forward-looking statements, which can be identified by the use of terminology such as "subject to," "believe," "expects," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy, although believed to be reasonable, are inherently uncertain. Factors which may materially affect such forward-looking statements include: (i) slow or negative growth in the recreational products industry; (ii) interruption of business or negative impact on sales and earnings due to acts of war, terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii) adverse publicity regarding safety issues; (iv) increased competition; (v) increased costs; (vi) loss or retirement of key members of management; (vii) increases in the cost of borrowings and unavailability of additional debt or equity capital; (viii) changes in general worldwide economic and political conditions in the markets in which BRP may compete from time to time; (ix) the inability of BRP to gain and/or hold market share of its wholesale and/or retail customers anywhere in the world; (x) the inability of BRP's clients to obtain and/or renew insurance; (xi) exposure to, and expense of defending and resolving, product liability claims and other litigation; (xii) the ability of BRP to successfully implement its business strategy; (xiii) the inability of BRP to manage its retail, wholesale, manufacturing and other operations efficiently; (xiv) consumer acceptance of BRP's products; (xv) fluctuations in foreign currencies, including the Canadian Dollar; (xvi) import-export controls on sales to foreign countries; (xvii) introduction of new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world; (xviii) the mix of BRP's products and the profit margins thereon; and (xix) other factors beyond BRP's control.
®, TM and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates.
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Contacts:
| Pierre Pichette Vice-president, Communications and Public affairs Tel: 450.532.5188 pierre.pichette@brp.com | Stéphanie Vaillancourt Manager, Financing and Investor relations Tel: 514-732-7061 stephanie.vaillancourt@brp.com |