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Exact Name of Registrant Guarantor
as Specified in its Charter (or Other Organizational Document) |
| |
Address of Registrant’s Principal Executive Offices
|
|
Regal Beloit America, Inc. | | | 111 W. Michigan Street, Milwaukee, WI 53203 | |
Rexnord Industries, LLC | | | 111 W. Michigan Street, Milwaukee, WI 53203 | |
Land Newco, Inc. | | | 111 W. Michigan Street, Milwaukee, WI 53203 | |
Altra Industrial Motion Corp. | | |
300 Granite Street, Suite 201, Braintree, MA 02184
|
|
American Precision Industries Inc. | | | 270 Quaker Road, East Aurora, NY 14052 | |
Ameridrives International, LLC | | | 1802 Pittsburgh Avenue, Erie, PA 16502 | |
AS Motion North America Inc. | | |
300 Granite Street, Suite 201, Braintree, MA 02184
|
|
Boston Gear LLC | | | 701 Carrier Drive, Charlotte, NC 28216 | |
Formsprag LLC | | | 23601 Hoover Road, Warren, MI 48089 | |
Guardian Couplings LLC | | |
300 Indiana Highway 212, Michigan City, IN 46360
|
|
Inertia Dynamics, LLC | | | 31 Industrial Park Road, New Hartford, CT 06057 | |
Kilian Manufacturing Corporation | | | 1728 Burnet Avenue, Syracuse, NY 13206 | |
Kollmorgen Corporation | | | 201 Rock Road West, Radford, VA 24141 | |
Nook Industries, LLC | | | 4950 East 49th Street, Cleveland, OH 44125 | |
PacSci Motion Control, Inc. | | |
300 Granite Street, Suite 201, Braintree, MA 02184
|
|
TB Wood’s Corporation | | | 440 North Fifth Avenue, Chambersburg, PA 17201 | |
TB Wood’s Incorporated | | | 440 North Fifth Avenue, Chambersburg, PA 17201 | |
Thomson Industries, Inc. | | | 203A Rock Road West, Radford, VA 24141 | |
Thomson Linear LLC | | | 1300 North State Street, Marengo, IL 60152 | |
Warner Electric LLC | | | 449 Gardner Street, South Beloit, IL 61080 | |
| | |
Year Ended
December 31, 2023 (in millions) |
| |||
Net Sales
|
| | | | 3,183.9 | | |
Gross Profit
|
| | | | 1,117.3 | | |
Loss from Operations
|
| | | | (37.3) | | |
Interest Expense
|
| | | | 515.2 | | |
Net Loss
|
| | | | (435.3) | | |
Net Loss Attributable to Regal Rexnord Corporation
|
| | | | (435.3) | | |
Net Sales to Non-Guarantor Subsidiaries
|
| | | | 252.3 | | |
Interest Expense Due To Non-Guarantors
|
| | | | 84.7 | | |
| | |
December 31, 2023
(in millions) |
| |||
Total Current Assets
|
| | | | 1,285.0 | | |
Goodwill
|
| | | | 4,262.6 | | |
Intangible Assets, Net of Amortization
|
| | | | 2,374.0 | | |
Other Noncurrent Assets
|
| | | | 1,062.8 | | |
Total Assets
|
| | | | 7,699.4 | | |
Total Current Liabilities
|
| | | | 697.0 | | |
Long-Term Debt
|
| | | | 6,351.3 | | |
Other Noncurrent Liabilities
|
| | | | 4,246.1 | | |
Total Liabilities
|
| | | | 10,597.4 | | |
Due from Non-Guarantor Subsidiaries
|
| | | | 526.4 | | |
Due to Non-Guarantor Subsidiaries
|
| | | | 3,453.1 | | |
(in millions)
|
| |
Regal Rexnord
Historical Year Ended December 31, 2023 |
| |
Altra After
Reclassification January 1, 2023 to March 27, 2023 (Note 2) |
| |
Transaction
Accounting Adjustments — Merger |
| |
(Note 4)
|
| |
Transaction
Accounting Adjustments — Debt Financing |
| |
(Note 4)
|
| |
Pro Forma
Combined |
| |||||||||||||||||||||
Net Sales
|
| | | $ | 6,250.7 | | | | | $ | 451.1 | | | | | | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 6,701.8 | | |
Cost of Sales
|
| | | | 4,183.4 | | | | | | 290.1 | | | | | | 5.4 | | | | | | (a) | | | | | | — | | | | | | | | | | | | 4,478.9 | | |
Gross Profit (Loss)
|
| | | | 2,067.3 | | | | | | 161.0 | | | | | | (5.4) | | | | | | | | | | | | — | | | | | | | | | | | | 2,222.9 | | |
Operating Expenses
|
| | | | 1,537.4 | | | | | | 104.6 | | | | | | 26.9 | | | | | | (b) | | | | | | — | | | | | | | | | | | | 1,668.9 | | |
Goodwill impairment
|
| | | | 57.3 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 57.3 | | |
Asset Impairments
|
| | | | 7.8 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 7.8 | | |
Loss on Assets Held for Sale
|
| | | | 87.7 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 87.7 | | |
Total Operating Expenses
|
| | | | 1,690.2 | | | | | | 104.6 | | | | | | 26.9 | | | | | | | | | | | | — | | | | | | | | | | | | 1,821.7 | | |
Income (Loss) from Operations
|
| | | | 377.1 | | | | | | 56.4 | | | | | | (32.3) | | | | | | | | | | | | — | | | | | | | | | | | | 401.2 | | |
Interest Expense
|
| | | | 431.0 | | | | | | 16.6 | | | | | | (15.3) | | | | | | (c) | | | | | | 31.8 | | | | | | (c) | | | | | | 464.1 | | |
Interest Income
|
| | | | (43.6) | | | | | | (1.0) | | | | | | — | | | | | | | | | | | | 29.4 | | | | | | (d) | | | | | | (15.2) | | |
Other (Income) Expense, Net
|
| | | | (8.7) | | | | | | 0.1 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (8.6) | | |
(Loss) Income before Taxes
|
| | | | (1.6) | | | | | | 40.7 | | | | | | (17.0) | | | | | | | | | | | | (61.2) | | | | | | | | | | | | (39.1) | | |
Provision (Benefit) for Income
Taxes |
| | | | 52.7 | | | | | | 9.3 | | | | | | (3.6) | | | | | | (e) | | | | | | (13.1) | | | | | | (e) | | | | | | 45.3 | | |
Net (Loss) Income
|
| | | | (54.3) | | | | | | 31.4 | | | | | | (13.4) | | | | | | | | | | | | (48.1) | | | | | | | | | | | | (84.4) | | |
Less: Net Income Attributable to Noncontrolling Interests
|
| | | | 3.1 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 3.1 | | |
Net (Loss) Income Attributable to Common Shareholders
|
| | | | (57.4) | | | | | | 31.4 | | | | | | (13.4) | | | | | | | | | | | | (48.1) | | | | | | | | | | | | (87.5) | | |
Loss Per Share Attributable to Common Shareholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | (0.87) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1.32) | | |
Assuming Dilution
|
| | | | (0.87) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1.32) | | |
Weighted Average Number of Shares Outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 66.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66.3 | | |
Assuming Dilution
|
| | | | 66.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 66.3 | | |
Altra Presentation
|
| |
Regal Rexnord
Presentation |
| |
Altra
(Historical) |
| |
Reclassification
|
| |
Altra
(Historical, after Reclassification) |
| |||||||||
Net Sales
|
| | Net Sales | | | | $ | 451.1 | | | | | | — | | | | | $ | 451.1 | | |
Cost of Sales
|
| | Cost of Sales | | | | | 288.9 | | | | | | 1.2(iii) | | | | | | 290.1 | | |
Selling, General and Administrative Expenses
|
| | | | | | | 89.1 | | | | | | (89.1)(i) | | | | | | — | | |
| | | Operating Expenses | | | | | — | | | | | | 104.6(i)(ii)(iii) | | | | | | 104.6 | | |
Research and Development Expenses
|
| | | | | | | 15.3 | | | | | | (15.3)(ii) | | | | | | — | | |
Restructuring Costs
|
| | | | | | | 1.4 | | | | | | (1.4)(iii) | | | | | | — | | |
Interest Expense, net
|
| | Interest Expense | | | | | 15.6 | | | | | | 1.0 | | | | | | 16.6 | | |
| | | Interest Income | | | | | | | | | | | (1.0)(iv) | | | | | | (1.0) | | |
Other Non Operating (Income)/
Expense, net |
| | Other (Income) Expense, net | | | | | 0.1 | | | | | | — | | | | | | 0.1 | | |
Provision for Income Taxes
|
| |
Provision (Benefit) for Income Taxes
|
| | | | 9.3 | | | | | | — | | | | | | 9.3 | | |
(in millions)
|
| |
For the Year Ended
December 31, 2023 |
| |||
Pro forma transaction accounting adjustments – Merger: | | | | | | | |
Incremental Change in Amortization of Intangible Assets(i)
|
| | | $ | 25.6 | | |
Property, Plant and Equipment Depreciation Step Up(ii)
|
| | | | 1.3 | | |
Net pro forma transaction accounting adjustments – Merger to Operating Expenses
|
| | |
$
|
26.9
|
| |
(in millions)
|
| |
Weighted
Average |
| |
Preliminary Fair
|
| ||||||
Preliminary fair value of intangible assets acquired: | | | | | | | | | | | | | |
Customer relationships
|
| | | | 14 | | | | | $ | 1,710.0 | | |
Trademarks
|
| | | | 10 | | | | | | 330.0 | | |
Technology
|
| | | | 13 | | | | | | 102.0 | | |
Intangible assets acquired
|
| | | | | | | | | $ | 2,142.0 | | |
(in millions)
|
| |
For the Year Ended
December 31, 2023 |
| |||
Pro forma transaction accounting adjustments – Merger: | | | | | | | |
Removal of historical Altra Interest Expense(i)
|
| | | $ | (15.3) | | |
Net pro forma transaction accounting adjustments – Merger to Interest Expense
|
| | |
$
|
(15.3)
|
| |
Pro forma transaction accounting adjustments – Debt Financing: | | | | | | | |
Removal of historical Regal Rexnord Interest Expense related to the Private Placement Notes(ii)
|
| | | $ | (1.4) | | |
New Interest Expense on Debt Financing: | | | | | | | |
Senior Notes(iii)
|
| | | | 19.3 | | |
Term Facility(iv)
|
| | | | 13.9 | | |
Net pro forma transaction accounting adjustments – Debt Financing to Interest Expense
|
| | |
$
|
31.8
|
| |
|
By First Class Mail:
|
| |
By Facsimile Transmission:
|
| |
By Courier or Overnight Delivery:
|
|
|
U.S. Bank Trust Company, National Association
Attention: Specialized Finance 111 Fillmore Avenue – EP-MN-WS2N Saint Paul, Minnesota 55107-2292 |
| |
(651) 466-7372
Attention: Specialized Finance Your fax cover sheet should provide a call-back number and request a call back, upon receipt. |
| |
U.S. Bank Trust Company, National Association
Attention: Specialized Finance 111 Fillmore Avenue Saint Paul, Minnesota 55107-1402 |
|
|
To confirm by telephone or for information:
(800) 934-6802 |
|
Rating
|
| |
Percentage
|
|
Ba1
|
| |
25 basis points
|
|
Ba2
|
| |
50 basis points
|
|
Ba3
|
| |
75 basis points
|
|
B1 or below
|
| |
100 basis points
|
|
Rating
|
| |
Percentage
|
|
BB
|
| |
25 basis points
|
|
BB-
|
| |
50 basis points
|
|
B+
|
| |
75 basis points
|
|
B or below
|
| |
100 basis points
|
|
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