Rexnord talks $500 million eight-year notes to yield in 5% area; pricing Thursday

By Paul A. Harris

Portland, Ore., Nov. 30 – Rexnord Corp. talked its $500 million offering of eight-year senior notes (B+) to yield in the 5% area, according to a syndicate source.

Books close at 2 p.m. ET on Thursday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Credit Suisse Securities (USA) LLC is the left bookrunner. BMO Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc, Barclays, Goldman Sachs & Co. and Mizuho Securities are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds, along with about $300 million of cash on the balance sheet, will be used to pay down the company’s term loan B.

The issuing entities will be RBS Global, Inc. and Rexnord LLC, indirect wholly owned subsidiaries of Rexnord, a Milwaukee-based industrial company.

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