Bank of China contributes $38.3 million to $2.04 billion USD syndicated loan to Regal Rexnord Corporation and Land Newco for debt refinancing purposes in 2022 (Linked to Record ID#107824)

Project narrative

On May 14, 2021, financial close was reached on a deal in which a syndicate of 19 banks — including Bank of China — entered into a $486,827,669 USD syndicated loan agreement with Land Newco, Inc. and Regal Beloit Corporation, a Wisconsin-based manufacturer of electric motors, electrical motion controls, and power generation products. The maturity of the loan was just over 2 years, with a final maturity date of August 25, 2023, and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes. The proceeds were used by the borrower to support the reverse morris trust transaction. Originally, Rexnord Corporation and Regal Beloit Corporation were separate companies. Then, in 2021, Rexnord spun off its PMC Business into a new company called Land Newco, which was then merged with Regal Beloit. The newly established company was named as Regal Rexnord Corporation. Meanwhile, Rexnord Corporation changed its name to Zurn Water Solutions. While Bank of China contributed to this loan (Record ID#107824), the following lenders also participated: JPMorgan Chase Bank, N.A.; Barclays Bank PLC; U.S. Bank National Association; Wells Fargo Bank, N.A.; Bank of America, N.A.; PNC Bank, National Association; Truist Bank; BMO Harris Bank, N.A.; Citibank, N.A.; Fifth Third Bank, National Association; MUFG Bank, Ltd.; HSBC Bank USA, N.A.; Regions Bank; Sumitomo Mitsui Banking Corporation; TD Bank, N.A.; Banco Bilbao Vizcaya Argentaria, S.A. New York Branch; and First Hawaiian Bank. On March 28, 2022, financial close was reached on a deal in which a syndicate of 19 banks — including Bank of China, NY Branch — entered into a $2,036,827,669 USD syndicated loan agreement with Regal Rexnord Corporation and Land Newco, Inc., a Wisconsin-based manufacturer of electric motors and power transmission components. This loan was divided into three tranches: Term A-1 Loan ($550,000,000 USD), Term A-2 Loan ($486,827,669 USD), and a Revolving Loan Facility ($1,000,000,000 USD). The maturity of the loan is 5 years, with a final maturity date of March 28, 2027, and the interest rate is SOFR plus an applicable margin, which adjusts quarterly based on the company’s Funded Debt to EBITDA ratio. The proceeds were used by the borrower to refinance existing credit agreements, support working capital, and provide general corporate funding, including for growth and post-merger integration. While Bank of China contributed $38,367,740 USD to this loan (Record ID#107825), the following lenders also participated: JPMorgan Chase Bank, N.A.; U.S. Bank National Association; Wells Fargo Bank, N.A.; Bank of America, N.A.; PNC Bank, National Association; Truist Bank; BMO Harris Bank, N.A.; Citibank, N.A.; Fifth Third Bank, National Association; MUFG Bank, Ltd.; HSBC Bank USA, N.A.; Barclays Bank PLC; Regions Bank; Sumitomo Mitsui Banking Corporation; TD Bank, N.A.; Banco Bilbao Vizcaya Argentaria, S.A. New York Branch; and First Hawaiian Bank.