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REXNORD CORPORATION ANNOUNCES COMPLETION OF RECAPITALIZATION

 REXNORD CORPORATION ANNOUNCES COMPLETION OF RECAPITALIZATION
 MILWAUKEE, July 9 /PRNewswire/ -- Rexnord Corporation (NYSE: REX) announced the completion today of a broad recapitalization plan generating cash proceeds of $388 million. The proceeds were used to retire all of the company's 13-5/8 percent Senior Subordinated Notes and redeem shares of preferred stock currently paying dividends at the rate of 14.49 percent per annum held by persons and entities other than affiliates of The Fairchild Corporation (NYSE: FA). The remaining shares of preferred stock owned by affiliates of The Fairchild Corporation were retired through the exchange of such shares for common stock. After giving effect to the recapitalization, these affiliates own approximately 45 percent of the company's common stock.
 The company sold 9.2 million shares of common stock at $17 per share, including 7.6 million shares in the United States and Canada, and 1.6 million shares in international offerings. The common stock of the company has been listed on the New York Stock Exchange under the symbol "REX."
 The company also completed the sale of $172.5 million principal amount of 10-3/4 percent Senior Notes due 2002. The company has also increased by $59 million the amount of bank commitments under its existing credit agreement, and extended the maturity dates.
 Donaldson, Lufkin & Jenrette Securities Corporation and Bear, Stearns & Co. Inc. were managing underwriters for the initial public offering of common stock. Citicorp Securities Markets, Inc., Bear, Stearns & Co., Inc. and Donaldson, Lufkin & Jenrette Securities Corporation were managing underwriters for the issuance of the Senior Notes.
 Rexnord Corporation is currently celebrating its 100-year anniversary. Incorporated as Chain Belt Company in 1892, the company was later renamed Rexnord Inc. Rexnord Corporation was formed in August 1988 through the combination of the former Mechanical Power Division of Rexnord Inc. and PT Components Inc.
 Rexnord is a leading worldwide manufacturer and supplier of power transmission components and related products. Rexnord employs approximately 5,100 persons at 18 domestic and 10 international manufacturing locations and at other offices, service centers and warehouses throughout the world.
 -0- 7/9/92
 /CONTACT: T.J. Jansen, 414-643-2252, or C.R. Roy, 414-643-2249, both of Rexnord Corporation/
 (REX FA) CO: Rexnord Corporation, The Fairchild Corporation ST: Wisconsin IN: AUT SU: RCN


DH -- DE015 -- 7868 07/09/92 13:16 EDT
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Publication:PR Newswire
Date:Jul 9, 1992
Words:384
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