New Issue: Bombardier Recreational Products $200 million 10-year notes yield 8 3/8%

By Paul A. Harris

St. Louis, Dec. 11 - Bombardier Recreational Products sold $200 million of senior subordinated notes Thursday due Dec. 15, 2013 (B3/B-) at par to yield 8 3/8%, a syndicate source said.

Revised price talk was 8 3/8%-8½%, in from the 8 5/8% area.

Merrill Lynch & Co. and UBS Investment Bank ran the books on the Rule 144A deal. The co-managers were Harris Nesbitt and RBC Capital Markets.

Bombardier Recreational Products plans to use proceeds of the issue to help fund the C$1.185 billion leveraged buyout by Bain Capital.

The issuer is a Montreal-based manufacturer of recreational products.

Issuer:	Bombardier Recreational Products
Security description:	Senior subordinated notes
Bookrunners:	Merrill Lynch & Co., UBS Investment Bank
Co-managers:	Harris Nesbitt, RBC Capital Markets
Amount:	$200 million
Maturity:	Dec. 15, 2013
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	415 basis points
Call features:	Callable after Dec. 15, 2008 at 104.188, 102.792, 101.396 par on Dec. 15, 2011 and thereafter
Equity clawback:	Until Dec. 15, 2006 for 35% at 108.375
Settlement date:	Dec. 18, 2003
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8 3/8%-8½% (revised from 8 5/8% area)

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