Bombardier Recreational Products gets required consents, sets pricing for 8 3/8% notes

By Jennifer Chiou

New York, June 5 - Bombardier Recreational Products Inc. announced it received the required consents in a cash tender offer for any and all of its $200 million of 8 3/8% senior subordinated notes due 2013 and also said it set pricing in the offer.

The Valcourt, Quebec-based recreational products company received consents from 100% of noteholders at the consent deadline to amend the note indenture, eliminating all of the restrictive covenants and amending certain other provisions.

The consent deadline was 5 p.m. ET on June 2. The offer began on May 19.

For each $1,000 principal amount of notes, the company said it will pay $1,104.85, a payout determined using the yield to maturity of the 3 3/8% Treasury due Dec. 15, 2008 and 50 basis points. The payout includes a $50.00 consent payment for those who tendered their securities by the consent deadline.

The reference security was 4.904% and the tender yield was 5.404%.

The offer ends at midnight ET on June 16 and is conditioned upon consents from a majority of noteholders and the concurrent completion of a recapitalization, which includes the execution of a new senior secured credit facility.

Merrill Lynch & Co. is the dealer manager and solicitation agent (888 ML4-TNDR or call collect 212 449-4914). Global Bondholder Services Corp. is the information agent (866 470-4300 or call collect 212 430-3774).

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