Rexnord amends agreement, lowers pricing, extends revolver maturity

By Tali Rackner

Norfolk, Va., Nov. 3 – Rexnord Corp. subsidiaries Rexnord LLC, Chase Acquisition I, Inc. and RBS Global, Inc. entered into an incremental assumption agreement to its third amended and restated first-lien credit agreement on Wednesday with Credit Suisse AG as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement: (a) reduces the applicable margin on loans by 100 basis points to a spread of Libor plus 275 bps to 300 bps; (b) extends the revolving facility maturity date to March 15, 2019; (c) reduces the letter-of-credit availability to $60 million from $80 million without reducing the overall availability under the existing agreement; and (d) modifies the financial covenant by eliminating the springing nature of the covenant and substituting a total net leverage ratio of 6.75 times for the current net first-lien leverage ratio of 7.75 times.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: Process and motion control, and water management.

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