Rexnord reports early results for exchange offers for 8 7/8% notes, toggle notes

By Angela McDaniels

Tacoma, Wash., April 6 - RBS Global, Inc. and Rexnord LLC and their parent, Rexnord Holdings, Inc., had received tenders for about $307 million of bonds as of the early tender date under the private exchange offers the companies began on March 24.

As of 5 p.m. ET on April 3, holders had tendered about $71 million of the 8 7/8% senior notes due 2016 issued by RBS Global and Rexnord LLC and $235.7 million of Rexnord Holdings' PIK toggle senior notes due 2013.

The tender withdrawal deadline was 5 p.m. ET on April 3, and the offers end at midnight ET on April 21.

The company is offering new 9½% senior notes due 2014 in exchange for the 8 7/8% notes and toggle notes. The new notes will have substantively the same terms as the existing 9½% senior notes due 2014 but will not be fungible with or exchangeable for those notes, according to a news release.

As previously reported, an informed source told Prospect News that Credit Suisse is leading the deal and that qualified institutional investors are being offered new notes at 92.50 on the dollar for the 8 7/8% notes and at 53.75 for the toggle notes.

Those are all-in prices that include early participation premiums for notes tendered by the early tender date. For each $1,000 principal amount, the premium is $25.00 of new notes for the 8 7/8% notes and $37.50 of new notes for the toggle notes.

The offers are not conditioned on a minimum amount of old notes being tendered.

The companies said the purpose of the offers is to reduce outstanding debt.

D.F. King & Co., Inc. (800 431-9645 or 212 269-5550) is the information agent and exchange agent.

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

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