A sizable bloc of Rexnord (NYSE: RXN ) will soon be in different hands if a secondary offering goes as planned. The company announced that "certain funds affiliated with" Apollo Global Management (NYSE: APO ) are floating a 6.5 million-share stake in an underwritten public offering. The price is $16 per share. Additionally, the company's underwriters have been granted a purchase option for up to an additional 975,000 shares.
Rexnord stressed that it will receive no proceeds from the offering, as it is not the selling party.
The bookrunners of the issue are Goldman Sachs, Bank of America's Merrill Lynch, and the Securities units of Deutsche Bank and Credit Suisse (NYSE: CS ) . The offering is expected to close "on or about" June 26.
Currently, Rexnord has just over 97 million shares outstanding, and its stock trades at $17.12 per share.