Rexnord Holdings retires some pay-in-kind toggle notes due 2013

By Angela McDaniels

Tacoma, Wash., June 1 - Rexnord LLC said its indirect parent company, Rexnord Holdings, Inc., retired a portion of its outstanding pay-in-kind toggle senior notes due 2013.

The retirement was made using a dividend payment from Rexnord, which it funded with a portion of the $65.2 million of borrowings it made under its revolving credit facility and accounts receivable securitization program during the fiscal fourth quarter ended March 31. The remainder of the borrowings was used to purchase Fontaine-Alliance Inc.

The company had cash of $277.5 million at March 31 and a leverage ratio of 5.8 times, according to its earnings release for the quarter. On March 31, 2008, the figures were $135.6 million and 5.3 times, respectively.

Rexnord is a Milwaukee-based manufacturer of highly engineered power transmission, aerospace and other precision motion technology products.

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