Rexnord Corp., the industrial components maker majority owned by Apollo Global Management LLC, is seeking a $1.95 billion term loan as BMC Software Inc. reduced the size on its buyout loans.
Rexnord is offering seven-year debt that may pay interest at 3 percentage points to 3.25 percentage points more than the London interbank offered rate, according to a person with knowledge of the transaction who asked not to be identified because the terms aren’t set. The benchmark will have a minimum of 1 percent. The loan is being used to refinance bank debt and pay down bonds of two of the Milwaukee-based company’s subsidiaries, Rexnord said today in a statement.
Technology provider BMC Software Inc. cut the size on the loan it is seeking to back the Houston-based company’s buyout by a group including Bain Capital LLC. BMC is now seeking a $2.88 billion term loan, down from an initially proposed $3.2 billion, according to person with knowledge of the offering who asked not to be identified because the terms aren’t public. A 750 million-euro ($1 billion) portion was reduced to 500 million euros, the person said.
Prices on the largest first-lien loans dropped for the 10th time in 11 days, losing 0.05 cent to 98.14 cents today, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index.
Boyd Gaming Corp. shuffled the structure of $1.75 billion in loans it’s seeking to refinance existing debt. The Las Vegas-based casino operator decreased the size of a term loan coming due in 2020 to $900 million from $1 billion, increased a $150 million piece maturing in 2018 to $250 million and left the size of its $600 million revolving credit facility unchanged, according to a person with knowledge of the deal who asked not to be identified because the terms aren’t set.