On November 21, 2019, Chase Acquisition I, Inc., RBS Global, Inc. (“RBS”), Rexnord LLC (together with RBS, the “Borrowers”) and certain other domestic subsidiaries of Rexnord Corporation (“Rexnord”) entered into an Incremental Assumption Agreement (the “Incremental Assumption Agreement”) with Credit Suisse AG, Cayman Islands Branch as administrative agent (in such capacity, the “Administrative Agent”) and as the refinancing term lender, relating to the Third Amended and Restated First Lien Credit Agreement, dated as of August 21, 2013, as previously amended, among Chase Acquisition I, Inc., the Borrowers, the lenders from time to time party thereto and the Administrative Agent (the “Existing Agreement”).

The Incremental Assumption Agreement provides for a refinancing of the Borrowers’ existing Term B Loans (the “Term B Refinancing Loan”) with reductions in the applicable margins, as discussed below. The Term B Refinancing Loan was issued in an aggregate principal amount of $725.0 million. The proceeds of the Term B Refinancing Loan were used to repay in full the aggregate principal amount of existing Term B Loans outstanding under the Existing Agreement (the “Existing Term B Loan”). The Incremental Assumption Agreement also makes certain other technical changes to the Existing Agreement, such as adding provisions related to the potential future replacement of the London Interbank Offered Rate.

The Term B Refinancing Loan has a maturity date of August 21, 2024, which is unchanged from the maturity date under the Existing Term B Loan. Borrowings under the Term B Refinancing Loan bear interest at either (i) an Adjusted LIBO Rate (subject to a 0% floor) plus an applicable margin of 1.75% (which was reduced from 2.0%) or at an alternative base rate plus an applicable margin of 0.75% (which was reduced from 1.00%).>The maturity date and interest rate with respect to the Company’s $264 million revolving credit facility under the Existing Agreement remain unchanged.

The summary above is qualified in its entirety by reference to the copy of the Incremental Assumption Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03.

(d) Exhibits

Rexnord Corp Exhibit
EX-10.1 2 exhibit101executionversi.htm EXHIBIT 10.1 exhibit101executionversi EXECUTION VERSION INCREMENTAL ASSUMPTION AGREEMENT INCREMENTAL ASSUMPTION AGREEMENT (this “Agreement”) dated as of November 21,…
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About REXNORD CORPORATION (NYSE:RXN)

Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.