S&P rates Rexnord loans BB

S&P said it affirmed its BB issuer credit rating on Rexnord LLC and removed all ratings from CreditWatch, where the agency placed them with negative implications on Feb. 17, 2021.

Concurrently, S&P said it assigned a BB issue-level rating and 3 recovery rating to the company's proposed $550 million senior secured term loan B and $200 million revolving credit facility.

The outlook is stable.

Rexnord is refinancing its capital structure as it nears the merger of its process and motion control business with Regal Beloit Corp. while retaining the water management segment as the sole business.

“We believe Rexnord, which will do business as Zurn Water Solutions (Zurn), will have a weaker business risk profile due to the significant reduction in scale, scope, and diversity after the transaction, offset by stronger cash flow metrics due to relatively resilient WM revenue and an asset-lite business structure,” S&P said in a news release.

© 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.