Rexnord exchanges $450 million Libor plus 625 bps toggle loan into notes

By Paul A. Harris

St. Louis, July 11 - Rexnord Holdings Inc. disclosed on Friday that it has exchanged its Libor plus 625 basis points pay-in-kind toggle loans into notes.

The information was disclosed in an 8-K filed with the Securities and Exchange Commission.

In February 2007 Rexnord priced a $450 million senior unsecured PIK toggle term loan at 98.00.

The cash-pay coupon was set at Libor plus 625 bps. The rate increases by 75 bps, to Libor plus 700 bps, if the company elects to pay in kind, as opposed to cash.

The loan was exchangeable into notes after one year.

Credit Suisse and Banc of America Securities LLC led the deal, which was upsized from $400 million.

Rexnord is a Milwaukee-based manufacturer of highly engineered power transmission, aerospace and other precision motion technology products.

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