Rexnord subsidiaries lower interest rate of term loan by 75 bps

By Marisa Wong

Madison, Wis., April 26 - Rexnord Corp. subsidiaries Chase Acquisition I, Inc., RBS Global, Inc. and Rexnord LLC entered into an incremental assumption agreement with Credit Suisse AG as administrative agent and refinancing term lender on April 24, according to an 8-K filing with the Securities and Exchange Commission.

The incremental assumption agreement modifies some terms of the term loan facility under the companies' second amended and restated credit agreement dated March 15, 2012, including reducing interest rates by 75 basis points.

As a result, the current interest rate is 3.75%, or Libor plus 275 bps, subject to a 1% Libor floor.

The incremental assumption agreement also resets a 1% penalty on prepayments occurring on or prior to Oct. 24.

On April 24, Rexnord made a $150 million prepayment on the term loan, thus reducing the outstanding principal amount of the facility to $788.2 million.

Rexnord is a Milwaukee-based industrial company.

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