Rexnord extends tender for 10 1/8% notes

By Jennifer Chiou

New York, June 30 - RBS Global, Inc. said its wholly owned subsidiary, Rexnord Corp., extended its tender offer for its $225 million of 10 1/8% senior subordinated notes due 2012 to 5 p.m. ET on July 20 from 5 p.m. ET on June 30.

Because of the extension, the price determination date will now be 10 a.m. ET on July 6.

As of 5 p.m. ET on June 28, holders of $217.906 million or 96.85% of the notes had tendered their securities.

As already announced, by the consent deadline of 5 p.m. ET on June 15, holders had tendered $217.314 million of 96.58% of the notes, enough to amend the indenture.

The company executed a supplementary indenture incorporating the changes. It will become effective when RBS buys the notes.

Based on previous pricing, Rexnord had said it would pay $1,107.34 per $1,000 principal amount of the notes, including the $30.00 consent payment.

RBS announced the tender on June 2 and said it was also soliciting consents to amend the note indenture to eliminate substantially all of the material restrictive covenants and certain events of default and related provisions.

The payment is based on the yield to maturity of the 4.25% Treasury due Nov. 30, 2007 and a fixed spread of 50 basis points. Noteholders will also receive accrued interest up to the payment date.

Those who tendered their securities by the consent deadline will receive a consent payment of $30.00 per $1,000 principal amount of notes, a sum included in the price calculation.

The company said the offer and solicitation are part of its purchase by Apollo Management from The Carlyle Group. The offer is conditioned upon the acquisition, which is expected to close in the third quarter.

The offer is also conditioned upon the receipt of $1.42 billion in new debt financing relating to the acquisition, funding for the offer and consents from holders of a majority of the notes.

Credit Suisse Securities (USA) LLC is dealer manager and solicitation agent (800 820-1653 or call collect (212 538-0652). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 859-8509).

Based in Milwaukee, Wis., Rexnord manufactures precision motion technology products, primarily focused on power transmission.

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