New Issue: Rexnord prices $1.145 billion eight-year notes at par to yield 8½%

By Paul A. Harris

St. Louis, April 21 - RBS Global, Inc. and Rexnord LLC priced a $1.145 billion issue of eight-year senior notes (Caa1/B-) at par to yield 8½% on Wednesday, according to an informed source.

The yield printed at the wide end of the 8¼% to 8½% price talk.

Credit Suisse, Bank of America Merrill Lynch and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market deal.

Proceeds will be used to repay all of the company's outstanding senior unsecured notes.

The issuer is a Milwaukee-based power transmission and water management products firm.

Issuer:	RBS Global, Inc. and Rexnord LLC
Amount:	$1.145 billion
Maturity:	May 1, 2018
Securities:	Senior notes
Bookrunners:	Credit Suisse, Bank of America Merrill Lynch, Goldman Sachs & Co.
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	509 bps
Call features:	Callable on May 1, 2014 at 104.25, 102.125, par on and after May 1, 2016
Trade date:	April 21
Settlement date:	April 28
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	8¼% to 8½%

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