Rexnord $705 million credit facility to launch Tuesday

By Sara Rosenberg

New York, June 8 - Rexnord Corp. has scheduled a bank meeting for Tuesday to launch its proposed $705 million credit facility, according to a market source.

Merrill Lynch, Credit Suisse, Bear Stearns and Lehman are the lead banks on the deal, with Merrill Lynch the left lead.

The facility consists of a $580 million covenant-light term loan and a $125 million revolver, the source said.

Proceeds will be used to help fund the leveraged buyout of Rexnord by Apollo Management from The Carlyle Group and management.

Under the LBO agreement, Apollo is purchasing RBS Global, Inc., the corporate parent of Rexnord, for $1.825 billion.

The transaction is subject to government approvals and other customary conditions and is expected to close in the third quarter.

Rexnord is a Milwaukee-based manufacturer of highly engineered precision motion technology products, primarily focused on power transmission.

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