Rexnord Corp.'s upsized term loan broke at 100 1/8 and traded up to 100 1/4, but dealers said trading was fairly inactive. One trader speculated buyers probably got what they wanted during syndication, and so little buying and selling post break was the result. The $610 million term loan is covenant-lite. Merrill Lynch and Credit Suisse lead the credit, which also includes a $125 million revolver. The financing backs Apollo Management's $1.825 billion acquisition of Rexnord from The Carlyle Group.
The term loan, which was increased from $580 million when money was moved from the bonds, is priced at LIBOR plus 2 1/2%. Pricing was originally LIBOR plus 2% (CIN, 6/06). Thomas Jansen, cfo, declined comment.