Regal Rexnord Corp Stock Price, News & Analysis

On January 9, 2023, Regal Rexnord Corporation (NYSE: RRX) announced the pricing of a $4.7 billion senior unsecured notes offering to fund its planned acquisition of Altra Industrial Motion Corp. The offering comprises four tranches of senior notes with varying due dates and interest rates. The proceeds will also be used to repay existing debts. The transaction is part of Regal's strategy to enhance its market position, although it holds significant risks related to the merger and ongoing business operations.

Regal Rexnord Corporation (NYSE: RRX) announced a private placement of senior unsecured notes to qualified institutional buyers as part of its strategy to finance its acquisition of Altra Industrial Motion Corp. The proceeds will be used to fund the merger, repay Altra's debts, and cover related expenses. The notes offering is not contingent on the merger's completion, which may occur afterward. The company emphasizes its commitment to energy-efficient industrial solutions, while cautioning against risks related to the merger and financial obligations, including significant debt incurred from the acquisition.

Regal Rexnord Corporation (NYSE: RRX) announced the appointment of Michael P. Doss to its Board of Directors, expanding the board from ten to eleven members. Doss has extensive experience as the President and CEO of Graphic Packaging Holding Company, which has a market cap of $9.4 billion. His term on the board will last until the 2023 annual shareholders meeting. Both Regal Rexnord's CEO and Board Chairman expressed confidence that Doss's leadership will enhance the company’s strategic growth and shareholder value.

Regal Rexnord Corporation (NYSE: RRX) announced plans to explore strategic alternatives for its Motors and Generators businesses within the Industrial Systems segment. CEO Louis Pinkham highlighted significant improvements in adjusted EBITDA margins, up 700 basis points, and strong revenue growth. The strategic review may lead to a divestiture of these assets, focusing on finding a better owner. Guggenheim Securities is advising on this review. Regal Rexnord specializes in industrial powertrain solutions and has a global manufacturing and service footprint.

Regal Rexnord Corporation (NYSE: RRX) has completed the first phase of financing for its acquisition of Altra Industrial Motion Corp., securing $1.1 billion through amendments to its credit agreement. CEO Louis Pinkham expressed optimism about the financing, citing strong bank market support. The financing includes a $500 million upsized revolving credit facility and $600 million in incremental term loan commitments, enhancing liquidity and flexibility for integrating Altra. The company aims to leverage the acquisition for future growth while maintaining an investment-grade credit profile.

Regal Rexnord Corporation (NYSE: RRX) will present at the Baird 2022 Global Industrial Conference in Chicago on November 9, 2022, at 12:00 PM CT. CEO Louis Pinkham and CFO Rob Rehard will lead the presentation. Interested parties can access presentation materials and a live webcast on the Company’s investor relations website. Regal Rexnord is a leader in industrial powertrain solutions and is committed to energy efficiency across its four segments: Motion Control Solutions, Climate Solutions, Commercial Systems, and Industrial Systems.

Regal Rexnord Corporation (NYSE: RRX) announced investment grade ratings from major credit agencies. Moody's assigned a Long-Term Issuer Rating of Baa3 and Fitch a BBB- rating, both with stable outlooks. Additionally, S&P assigned a BB+ Issuer Credit Rating. These ratings support Regal Rexnord's acquisition plans for Altra Industrial Motion Corp. The CEO highlighted that these ratings validate the strong credit profile and expected synergy, while aiming for a net leverage target of 2.0-2.5x by 2024.

Regal Rexnord Corporation reported a 48% increase in sales for Q3 2022 compared to the previous year, with an 8% organic growth. Although daily orders declined by 3.6%, the backlog rose nearly 70% since 2021. Adjusted EBITDA margin improved to 20.9%, while adjusted EPS was $2.66, down from $2.88 in the previous year. The company raised its 2022 guidance for adjusted EPS to a range of $10.35 to $10.75. CEO Louis Pinkham emphasized strong execution despite macroeconomic challenges.