MILWAUKEE--(BUSINESS WIRE)--Nov. 30, 2016--
Rexnord Corporation (NYSE: RXN) today announced the commencement of an
underwritten public offering of 7,000,000 depositary shares, each of
which represents a 1/20th interest in a share of its Series A
Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred
Stock”). The underwriters of the offering have an option to buy up to
1,050,000 additional depositary shares to cover over-allotments.
Rexnord intends to use the net proceeds from this offering to repay a
portion of its outstanding term loan indebtedness under its credit
agreement and for general corporate purposes.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.,
Barclays Capital Inc. and Citigroup Global Markets Inc. are acting as
joint book-running managers of the offering.
Holders of the depositary shares will be entitled to a proportional
fractional interest in the rights and preferences of the Mandatory
Convertible Preferred Stock, including conversion, dividend, liquidation
and voting rights, subject to the provisions of a deposit agreement with
the depositary. Unless earlier converted, each share of Mandatory
Convertible Preferred Stock will automatically convert on or
around November 15, 2019 into a variable number of shares of Rexnord’s
common stock. The conversion rates, dividend rate and other terms of the
Mandatory Convertible Preferred Stock will be determined at the time of
pricing of the offering of the depositary shares.
This offering is being made pursuant to an effective shelf registration
statement filed with the Securities and Exchange Commission (“SEC”).
The offering will be made only by means of a prospectus supplement and
the accompanying prospectus, copies of which may be obtained by
contacting: Credit Suisse Securities (USA) LLC at 11 Madison Avenue, New
York, New York, 10010, Attn: LCD-IBD or Deutsche Bank Securities Inc.,
Attn: Prospectus Group, 60 Wall Street, New York, NY, 10005-2836, by
calling 1-800-503-4611 or by emailing email@example.com.
These documents will also be filed with the SEC and will be available at
the SEC’s website at http://www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any of these securities nor shall there
be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
Headquartered in Milwaukee, Wisconsin, Rexnord is comprised of two
strategic platforms, Process & Motion Control and Water Management, with
approximately 8,000 employees worldwide. The Process & Motion Control
platform designs, manufactures, markets and services specified,
highly-engineered mechanical components used within complex systems. The
Water Management platform designs, procures, manufactures and markets
products that provide and enhance water quality, safety, flow control
Information in this release may involve outlook, expectations, beliefs,
plans, intentions, strategies or other statements regarding the future,
which are forward-looking statements. These forward-looking statements
involve risks and uncertainties. All forward-looking statements included
in this release are based upon information available to Rexnord
Corporation as of the date of the release, and Rexnord
Corporation assumes no obligation to update any such forward-looking
statements. The statements in this release are not guarantees of future
performance, and actual results could differ materially from current
expectations. Numerous factors could cause or contribute to such
differences. Please refer to “Risk Factors” and “Cautionary Notice
Regarding Forward-Looking Statements” in the Company’s Form 10-K for the
fiscal year ended March 31, 2016 as well as the Company’s annual,
quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from
time to time with the SEC for a further discussion of the factors and
risks associated with the business.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161130006357/en/
Source: Rexnord Corporation
Rob McCarthy, 414-223-1615
– Investor Relations