RBS Global, Rexnord receive consents needed to amend 9½%, 8 7/8% notes

By Angela McDaniels

Tacoma, Wash., April 21 - RBS Global, Inc. and Rexnord LLC have received 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, according to a company news release.

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

As of 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.

The consents received are 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 have been executed, and the amendments will become operative once the tendered notes are purchased.

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

Holders who tender their notes must consent to the amendments, and holders may not deliver consents without tendering their notes.

The company is offering par plus accrued interest for their notes.

Those who tendered by the consent date will also receive 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 tender offers will expire at midnight ET on May 4.

The consummation of the tender offers is 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 is Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147). The information agent is 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.