Regal Rexnord set to hawk split-rated notes backing $4.95 billion acquisition of Altra Industrial

By Paul A. Harris

Portland, Ore., Jan. 5 – Regal Rexnord Corp. (Baa3/BB+/BBB-) is staging for the sale of split-rated Rule 144A and Regulation S senior notes to help replace the $5.5 billion 364-day senior bridge loan put in place last November as part of the financing for its acquisition of Altra Industrial Motion Corp., according to market sources.

A non-deal roadshow is expected to get underway shortly, according to a high-yield portfolio manager, who added that J.P. Morgan Securities LLC will be the left bookrunner.

Regal Rexnord is also expected to bring an offering of investment-grade-rated senior secured notes, the portfolio manager said.

As reported, Regal Rexnord is acquiring Altra Industrial for about $4.95 billion in a merger deal expected to close during the first half of 2023.

Regal Rexnord is a Beloit, Wis.-based manufacturer of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems. Altra Industrial is a Braintree, Mass.-based designer and manufacturer of highly engineered motion control, automation and power transmission solutions.

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