Rexnord Corporation announced that its wholly owned subsidiaries, RBS Global and Rexnord LLC, entered into an amendment to their senior secured credit facilities providing for a new seven-year term loan in an aggregate amount of approximately $1.95 billion, in addition to their existing $265 million revolving credit facility.

According to the related 8-K filing, Credit Suisse AG acted as administrative agent and refinancing term lender.

The term loan matures on August 21, 2020, and is subject to a leveraged-based pricing grid, with initial LIBOR pricing (subject to a 1.00% floor) plus 3.00%. The proceeds were used to purchase, redeem or discharge all of the borrowers’ outstanding 8½ % senior notes due in 2018, refinance the borrorwers’ previously existing term loan and pay related fees and expenses.

Todd A. Adams, President and Chief Executive Officer, commented, “We are pleased to have successfully completed our refinancing. The benefits of the transaction include a significant improvement in our free cash flow and $0.25 to $0.30 of annualized earnings per share accretion, as well as extending our debt maturity profile to 2020. We will update our fiscal 2014 outlook, inclusive of this transaction, when we announce our second quarter earnings.”

Milwaukee, WI-based Rexnord is a worldwide industrial company comprised of two strategic platforms: Process & Motion Control and Water Management.