Rexnord carves $100 million euro tranche from $950 million term loan

By Sara Rosenberg

New York, March 5 - Rexnord LLC is now asking to raise in euros $100 million equivalent of its $950 million six-year covenant-light first-lien term loan, according to a market source.

Price talk on the new euro carve out is Euribor plus 425 basis points with a 1% floor and an original issue discount of 99, the source said.

Talk on the U.S. piece was unchanged at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.

As before, the term loan debt includes 101 soft call protection for one year.

The company's $1.13 billion credit facility (Ba3/BB-) also includes a $180 million five-year revolver talked at Libor plus 425 bps with a 1% Libor floor.

Commitments were due at 5 p.m. ET on Monday.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co., BMO Capital Markets Corp. and Sumitomo Mitsui Banking Corp. are the lead banks on the deal, with Credit Suisse the left lead.

Proceeds will be used to refinance existing term loan and revolver borrowings.

Rexnord is a Milwaukee-based industrial company comprised of two strategic platforms: process & motion control and water management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.