New Brunswick's anticipating repayment of its Covid loans
The Brunswick Group, the leading yachting group in the United States, owner of Mercury engines and boat brands such as the Boston Whaler, Bayliner, Quicksilver and Sea Ray, announced the partial repayment of loans taken out in March to deal with the Covid-19 crisis. It will repay on June 26, 2020, $200 million of the $385 million borrowed to guarantee its liquidity and cash flow at the height of the pandemic.
"Today, with a better view of the marine market and confidence in the execution of our forecasts, we believe this transaction is in the best interest of our company and our shareholders," said Ryan Gwillim, Chief Financial Officer of Brunswick. "While there remains uncertainty about the long-term economic impact of the Covid outbreak, we believe this action is the best balance between recognizing this risk and the short-term post containment demand conditions observed in our boat, engine, accessories and parts business."
Low stock market quotations
Some analysts in the American economic press seemed to share the optimistic assessment of the leaders, inviting shareholders to invest. While players in the leisure vehicle market saw their shares grow by 20%, those in the marine sector stagnated. Analyst Al Root is betting on the effects of Brunswick's refocusing on leisure boating (Editor's note: the group has divested its fitness equipment and billiard activities) to better withstand the crisis and benefit from growth comparable to that of leisure vehicles in a relatively short period of time.
