Fermer
Loading
Fermer

Fermer
You consult a document to analyse its content and determine whether it is useful for your teaching purposes. You order a document to use it in class. Note that the use of certain cases is subject to charges. These cases are easily identified by our business partners’ logos. When you want to use one of these cases in an educational context, you are redirected to the trading partner with which you will carry out the transaction.

Bombardier Recreational Products Inc.: The Financing of a Private Company
Case 9 20 2009 001
Case published in the International Journal of Case Studies in Management, Vol. 7, No. 3
Author : 
Languages : 
  • English
Keywords: 
  • Dividends,
  • Leveraged buy-out,
  • Financing,
  • Private equity fund
Year of production : 
2008
Registration date : 
2009-09-15
Teaching notes included : 
Yes
Abstract

This case study describes the financing plan for the privatization of Bombardier's Recreational Products Division in December 2003, and brings to issue the decision to either pay out a large dividend to the firm's equity sponsors or to repay outstanding debt one year following the privatization. The industry context, as well as the covenants included in the original loan agreements, serve as a backdrop to the decision that is examined.

Primary domain : 
Finance
Secondary domain : 
Not available
Sectors : 
  • Manufacturing
Source : 
HEC Montréal
Type : 
Traditional case 
Type of data used in the production of the case : 
Undefined
Event location : 
Montréal, Qc, Canada
Year of start of the event : 
2004
Year the event ended : 
2004
Business size : 
Moyenne