Deutsche Bank and Credit Suisse First Boston will launch the bank meeting for Rexnord Holdings this Thursday. The $435 million bank deal backs The Carlyle Group's acquisition of Rexnord from Invensys for $913 million. The bank debt is split between a six-year, $75 million revolver and a seven-year, $360 million term loan, a banker said. Pricing has not yet been set on the deal, and officials at the banks did not return calls.
Rexnord, a manufacturer of industrial power transmission components, was put up for sale in February as part of London-based Invensys' move to reduce the punishing debt load that last year threatened the industrial giant with bankruptcy. Reportedly, Rexnord's operating profit fell to $104 million last year on revenues of $704 million. The Carlyle Group, however, believes the industrial sector will rebound.