Rexnord readies launch of $800 million term loan for Wednesday

By Sara Rosenberg

New York, Nov. 28 – Rexnord LLC is scheduled to hold a bank meeting at 12:30 p.m. ET in New York on Wednesday to launch an $800 million covenant-light first-lien term loan due August 2024, according to a market source.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA and Mizuho are the lead banks on the deal.

Price talk on the term loan is Libor plus 225 basis points with a 0% Libor floor and a par issue price, the source said.

The term loan has 101 soft call protection for six months.

Proceeds will be used to help refinance an existing $1,594,000,000 covenant-light first-lien term loan due August 2023 that is priced at Libor plus 275 bps with a 1% Libor floor.

Other funds for the refinancing will come from $500 million of senior notes and cash on hand.

Lenders will be offered a 10 bps extension fee, the source added.

Expected term loan ratings are Ba3/BB+.

Commitments are due at 5 p.m. ET on Dec. 5.

Rexnord is a Milwaukee-based industrial company comprising 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.