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Rexnord holders tender 58% of 8 7/8% notes, toggle notes in exchange offer via Credit Suisse
By Susanna Moon
Chicago, April 27 - RBS Global, Inc. and Rexnord LLC and their parent Rexnord Holdings, Inc. said investors tendered $71 million principal amount of RBS and Rexnord's 8 7/8% senior notes due 2016 and $235.7 million principal amount of Rexnord Holdings' pay-in-kind toggle senior notes due 2013.
In exchange, the companies will issue $196.3 million principal amount of new 9½% senior notes due 2014 at 92.50 on the dollar for the 8 7/8% notes and at 53.75 for the PIK toggle notes.
As previously noted, those are all-in prices that include early participation premiums of $25.00 of new notes per $1,000 of 8 7/8% notes and $37.50 of new notes per $1,000 of toggle notes, if tendered by April 4.
The 8 7/8% notes were trading in the mid-70s when the offer began, according to market sources.
The new notes will have substantively the same terms as the existing 9½% senior notes due 2014 but will not be fungible with or exchangeable for those notes, according to a news release.
The existing 9½% notes were trading in the low 80s, according to market sources.
The offer expired at midnight ET on April 21. It began on March 26.
The settlement date is April 29.
Credit Suisse is leading the deal.
The companies said that the purpose of the offer is to reduce its outstanding debt.
The offer was not conditioned on a minimum principal amount of old notes being tendered.
D.F. King & Co., Inc. was the information agent and exchange agent (800 431-9645 or call collect 212 269-5550).
Rexnord is a Milwaukee-based manufacturer of highly engineered power transmission, aerospace and other precision motion technology products.
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