Terex Corporation Completes Senior Notes Offering, New Senior Secured Credit Facility and Announces Initial Results of Cash Tender Offer for 6.00% Senior Notes
January 31, 2017 at 04:13 pm
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Terex Corporation announced that it has completed the issuance of $600,000,000 principal amount of 5.625% senior notes due 2025 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended. Terex also announced that it has refinanced its existing senior secured credit facility with a new $850 million senior secured credit facility. The new facility is comprised of a revolving line of credit of $450 million and a $400 million term loan. The new facility provides lower borrowing rates for the term loan and extends the maturity dates for the revolving line of credit and the term loan.
Terex also announced the initial results of its previously announced tender offer for its 6.00% senior notes due 2021. Pursuant to the terms of the tender offer, Terex’s offer to pay an early tender payment in addition to the tender offer consideration expired at 5:00 p.m., New York City time, on January 30, 2017. Based on final information provided to Terex by Global Bondholder Services, the tender agent and information agent for the 2021 Notes, approximately $377,450,000 in aggregate principal amount of the 2021 Notes were validly tendered (and not validly withdrawn) at or prior to the Early Tender Deadline. Terex will accept the 2021 Notes validly tendered (and not validly withdrawn) at or prior to the Early Tender Deadline on January 31, 2017. Holders of the 2021 Notes who validly tendered (and did not validly withdraw) their 2021 Notes will receive $1,031.25 per $1,000 principal amount of their 2021 Notes on the Initial Settlement Date. Holders of the 2021 Notes who validly tender (and do not validly withdraw) their 2021 Notes after the Early Tender Deadline and at or prior to 11:59 p.m., New York City time, on February 13, 2017, unless extended or earlier terminated by Terex in its sole discretion will be eligible to receive $1,021.25 per $1,000 principal amount of their 2021 Notes on the Final Settlement Date, which will occur promptly following the Expiration Time and is expected to be February 14, 2017. Holders of the 2021 Notes will also receive accrued and unpaid interest from the last interest payment date on their 2021 Notes up to, but not including, the applicable settlement date for all of their 2021 Notes that Terex accepts for purchase. Pursuant to a previously announced notice of redemption, Terex will redeem any and all of the 2021 Notes that remain outstanding after the Final Settlement Date on February 15, 2017 at a redemption price of 103.000%, plus accrued and unpaid interest.
Terex Corporation is focused on manufacturing of materials processing machinery and aerial work platforms. The Company designs, builds and supports products used in maintenance, manufacturing, energy, recycling, minerals and materials management, and construction applications. The Companyâs segments include Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services and markets materials processing and specialty equipment, including crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and their related components and replacement parts. The AWP segment designs, manufactures, services and markets aerial work platform equipment, utility equipment and telehandlers. It markets aerial work platform products principally under the Terex and Genie brand names.