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Rexnord launches exchange offer for 8 7/8% notes, toggle notes via Credit Suisse
By Jennifer Chiou and Paul A. Harris
New York, March 26 - RBS Global, Inc. and Rexnord LLC and their parent, Rexnord Holdings, Inc. launched a private exchange offer on Thursday, according to an informed source.
Credit Suisse is leading the deal.
The offering targets the 8 7/8% senior notes due 2016 of RBS Global and Rexnord LLC as well as Rexnord Holdings' PIK toggle senior notes due 2013.
Qualified institutional investors are being offered new 9½% senior notes due 2014 at 92.50 on the dollar for the 8 7/8% senior notes and at 53.75 for the PIK toggle notes.
Those are all-in prices which include early participation premiums of $25 of new notes per $1,000 of 8 7/8% notes and $37.50 of new notes per $1,000 of toggle notes, if tendered by April 4.
The offer ends at midnight ET on April 21.
The 8 7/8% notes currently trade in the mid-70s, according to market sources.
The new notes will have substantively the same terms as the existing 9½% senior notes due 2014 but will not be fungible with or exchangeable for those notes, according to a news release.
The existing 9½% notes trade in the low 80s, according to market sources.
The companies said that the purpose of the offer is to reduce its outstanding debt.
The offer is not conditioned on a minimum principal amount of old notes being tendered.
The tender withdrawal deadline is 5 p.m. ET on April 3.
D.F. King & Co., Inc. is the information agent and exchange agent (800 431-9645 or call collect 212 269-5550).
Rexnord is a Milwaukee-based manufacturer of highly engineered power transmission, aerospace and other precision motion technology products.
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