Here's the Deal
 

Baird's Investment Banking Group is pleased to announce the following transaction:

March 2012


Rexnord Corporation
Initial Public Offering
$490.3 Million


Baird served as a co-manager in this offering


Rexnord Corporation (“Rexnord” or the “Company”) (NYSE: RXN), a portfolio company of funds affiliated with Apollo Global Management, LLC (“Apollo”) (NYSE: APO), recently completed an initial public offering of 27,236,842 shares of its common stock (including 3,552,631 shares issued in connection with underwriters’ exercise of an option to purchase additional shares) at a price of $18.00 per share, generating gross proceeds of approximately $490.3 million. Rexnord intends to use the proceeds to redeem $300.0 million of 11.75% senior subordinated notes due 2016, plus pay early redemption premiums of $17.6 million and approximately $7.4 million of accrued interest through the estimated redemption date. Rexnord also intends to use the proceeds to pay Apollo Management, L.P. a $15.0 million fee in connection with the termination of its existing management services agreement. The remaining net cash will be retained for general corporate purposes.

Rexnord® is a multi-platform diversified global industrial company comprised of two strategic platforms: Process & Motion Control and Water Management. Within Process & Motion Control, Rexnord designs, manufactures, markets and services specified, highly engineered mechanical components used within complex systems. Within Water Management, Rexnord designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. Founded in 1892, Rexnord is headquartered in Milwaukee, Wisconsin, U.S.A. and employs approximately 7,400 associates worldwide.

Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Hong Kong and Mumbai. As of December 31, 2011, Apollo and its subsidiaries had assets under management of approximately $75 billion in private equity, credit-oriented capital markets and real estate funds invested across a core group of industries where Apollo has considerable knowledge and resources.

Rexnord Corporation is publicly traded on the New York Stock Exchange.

For additional information about this transaction, please contact:
Managing Director, Director of Investment Banking
+1-(414) 298-7661
Managing Director
+1-(414) 298-7644
Managing Director, Equity Capital Markets
+1-(414) 765-7079
Managing Director
+1-(404) 264-2211
Managing Director
+44 (0) 20 7667 8370
Managing Director
+86 21 61820980

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