Rexnord to get new credit facility for LBO by Apollo

By Sara Rosenberg

New York, May 25 - Rexnord Corp. plans to obtain a new credit facility to help fund its leveraged buyout by Apollo Management from The Carlyle Group and management, according to a market source.

Merrill Lynch, Credit Suisse, Bear Stearns and Lehman are the lead banks on the deal, with Merrill Lynch the left lead.

Details on timing and structure of the new credit facility are still to be determined, the source added.

Under the LBO agreement, Apollo is purchasing RBS Global, Inc., the corporate parent of Rexnord, for $1.825 billion.

The transaction is subject to government approvals and other customary conditions and is expected to close in the third quarter.

Rexnord is a Milwaukee-based manufacturer of highly engineered precision motion technology products, primarily focused on power transmission.

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