Regal Beloit, Rexnord eye financing for Reverse Morris Trust transaction

Barclays is providing Regal Beloit Corp. committed financing in connection with its plan to acquire Rexnord Corp.'s process and motion control, or PMC, segment, which is expected to close in the fourth quarter of 2021.

Rexnord plans to separate its PMC unit by way of a tax-free spinoff to Rexnord shareholders and then immediately combine it with Regal in a Reverse Morris Trust transaction. Credit Suisse is providing Rexnord with committed financing for the transaction.

According to an investor presentation, pro forma 2021 net leverage is expected to be around 1.1x.

Regal Beloit designs, manufactures and sells electric motors, electrical motion controls, and power generation and transmission products.