RBS Global, Rexnord accept tenders for nearly all 9½%, 8 7/8% notes

By Jennifer Chiou

New York, May 5 - RBS Global, Inc. and Rexnord LLC announced the wrap of their tender offers in which they accepted tenders and consents for nearly all of their $795 million of 9½% senior unsecured notes due 2014 issued in 2006, $196.27 million of 9½% senior unsecured notes due 2014 issued in 2009 and $79,002,000 of 8 7/8% senior unsecured notes due 2016.

The offer ended at midnight ET on May 4.

Unchanged from the consent date, holders had tendered $794,142,000 principal amount, or 99.89%, of the 9½% notes issued in 2006, $196,257,000 principal amount, or 99.99%, of the 9½% notes issued in 2009 and $76,977,000 principal amount, or 97.44%, of the 8 7/8% notes.

Tender offers and consent solicitations for the notes began on April 7, and 5 p.m. ET on April 20 was the consent deadline.

The consents received were enough to approve the proposed amendments to the indentures governing the notes, which will eliminate substantially all of the material restrictive covenants, eliminate or modify some events of default and eliminate or modify related provisions.

Supplemental indentures were previously executed.

Consents were needed from the holders of at least a majority of a series of notes in order to amend that series.

Holders who tendered their notes had to consent to the amendments, and holders could not deliver consents without tendering their notes.

The companies were offering par plus accrued interest for their notes.

Those who tendered by the consent date also received a consent payment of $60.00 for each $1,000 principal amount of 9½% notes and $52.50 for each $1,000 principal amount of 8 7/8% notes.

The consummation of the tender offers was conditioned on the companies raising enough proceeds from the issuance of new senior unsecured debt to fund the offers and the receipt of consents from holders of at least a majority of the outstanding principal amount of both series of 9½% notes.

The dealer manager and solicitation agent was Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147). The information agent was D.F. King & Co., Inc. (212 269-5550 for brokers and banks, others call 800 290-6426).

RBS Global is the parent company of Rexnord, a Milwaukee-based provider of power transmission and water management products.

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