Bombardier Recreational Products extends tender for 8 3/8% notes

By Jennifer Chiou

New York, June 16 - Bombardier Recreational Products Inc. announced the extension of its cash tender offer for any and all of its $200 million of 8 3/8% senior subordinated notes due 2013 to midnight ET on June 23.

The offer was set to end at midnight ET on June 16.

At the 5 p.m. ET on June 2 consent deadline, the company said holders of 100% of the notes had tendered their securities.

The Valcourt, Quebec-based recreational products company received the required consents to amend the note indenture, eliminating all of the restrictive covenants and amending certain other provisions.

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 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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