1. BRP closed secondary offering of 1.85 million subordinate voting shares. 2. The offering generated gross proceeds of C$185 million for Bain Capital. 3. BRP did not receive any proceeds from this secondary share sale. 4. Bain now holds 11.72% of BRP's issued shares and 20.73% voting power. 5. The company continues to emphasize innovations like electric models.
FAQ
Why Neutral?
The offering does not directly impact BRP's cash flow or operations, similar to past secondary offerings showing minimal price impact.
How important is it?
While the offering itself may not be fund-raising for growth, it reflects shareholder dynamics that could influence market perception.
Why Short Term?
The immediate effects of share dilution may reflect in short-term trading, much like past events where secondary offerings caused short-term fluctuations.
BRP Inc. Closes Secondary Offering Yielding C$185 Million
BRP Inc. (TSX: DOO; NASDAQ: DOO) has successfully completed its previously announced secondary offering, which involved Bain Capital Integral Investors II, L.P. selling 1,850,000 subordinate voting shares at a price of C$100.00 per share. The total gross proceeds from this offering amount to C$185,000,000, which will go directly to the Selling Shareholder.
Details of the Offering
The subordinate voting shares were made available through a prospectus supplement dated December 18, 2025, aligning with BRP's short form base shelf prospectus filed on March 26, 2025. This filing was done with securities regulatory authorities in Canada and the U.S. Securities and Exchange Commission (SEC) under the U.S./Canada Multijurisdictional Disclosure System.
- Offering Price: C$100.00 per subordinate voting share
- Total Gross Proceeds: C$185,000,000
- Underwriter: RBC Capital Markets (no over-allotment option)
Post-Offering Shareholder Structure
Post-offering, Bain and its affiliates hold 8,603,493 multiple voting shares of BRP, representing approximately 11.72% of the total outstanding shares and 20.73% of the overall voting power of the company.
Company Overview
BRP Inc. is a leader in the powersports industry with a rich history spanning over 80 years. The company offers a diverse portfolio that includes renowned brands such as Ski-Doo, Lynx, Sea-Doo, and Can-Am, alongside Rotax marine propulsion systems and engines. As of January 31, 2025, BRP reported annual sales of C$7.8 billion, supported by a dedicated workforce of approximately 16,500 employees in over 130 countries.
Safe Harbor
Neither the contents of this announcement nor any part of the Offering has been approved by any securities regulatory authority. This announcement does not constitute an offer to sell or a solicitation to buy securities in any jurisdiction where such actions would be illegal before registration or qualification under the laws of such jurisdiction.
Contact Information
For more information, visit BRP's official website at www.brp.com or follow their news updates on Twitter at @BRPNews.