Reuters: Private Equity: UPDATE 1-Rexnord Corp sees IPO priced at $18-$20/shr

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UPDATE 1-Rexnord Corp sees IPO priced at $18-$20/shr Mar 19th 2012, 11:30 Mon Mar 19, 2012 8:32am EDT * Intends to list shares on NYSE under symbol "RXN" * Co first filed to go public in 2006 * To price IPO in the week starting March 26 - underwriter * To use the proceeds to repay debt March 19 (Reuters) - Apollo Management-backed Rexnord Corp filed its IPO terms on Monday as the U.S. industrial firm tries to go public after two failed attempts. The company said it expects to sell 23.7 million shares in its initial public offering at between $18 and $20 apiece. In May last year, Rexnord had filed to go public for a third time, filing with regulators to raise up to $700 million in its IPO. Rexnord had first filed for an IPO in 2006 when it was owned by private equity firm Carlyle Group, trying to raise up to $400 million. But the plan was scrapped after Apollo offered to buy the company for about $1.83 billion. It again filed for a $750 million IPO in 2008, but withdrew the prospectus later. The IPO will dilute Apollo's stake from 93.6 percent to 69.1 percent, according to a regulatory filing. The other major shareholder of the company is Chairman George Sherman -- former chief executive of diversified manufacturer Danaher Corp -- who will have a 6.7 percent stake after the IPO. Rexnord is expected to price its IPO and begin trading on the New York Stock Exchange in the week starting March 26, an underwriter told Reuters. Private equity firms are looking to take advantage of the renewed interest in IPO markets to exit their holdings. In the past, investor appetite for such offerings has been muted due to the weak economy and market conditions. At the mid-point of its currently indicated range, the company would be valued at about $1.72 billion. For the nine months ended December 31, 2011, the company recorded a net income of $21.3 million on sales of $1.42 billion, according to the filing. Milwaukee, Wisconsin-based Rexnord makes products for process and motion control -- gears, couplings, industrial bearings, aerospace bearings and seals -- and water management -- drainage products, flush valves and faucet products. Rexnord, which intends to list on the New York Stock Exchange under the symbol "RXN", said it expects to receive proceeds of about $421.3 million from the offering. It will use most of the proceeds to repay debt. Since part of the debt repayment will be made to affiliates of some of the banks underwriting the offering, Financial Industry Regulatory Authority (FINRA) regulations require the IPO to have a qualified independent underwriter, the filing said. Credit Suisse Securities will act as the independent underwriter to the offering. BofA Merrill Lynch, Goldman Sachs, Credit Suisse, Deutsche Bank and Barclays Capital are acting as representatives for the underwriters to the offering, the filing revealed. Link this Share this Digg this Email Reprints

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