Terex Completes New Senior Lending Facility and Redeems Senior Subordinated Notes

July 18, 2006 —Terex Corp., Westport, Conn., recently announced that it has entered into a new senior lending facility, which includes a revolving line of credit of $700 million and new senior term debt of $200 million.

 

The co-lead arrangers for the new senior lending facility were Credit Suisse Securities (USA) LLC, UBS Securities LLC, and Citigroup Global Markets, Inc. Terex used the proceeds of its new senior term debt and cash on hand to pay in full its previously outstanding senior term debt of approximately $229 million.

In addition, Terex announced that it will redeem the remaining $200 million outstanding principal amount of its 10 3/8% Senior Subordinated Notes due 2011, effective August 14, 2006. As set forth in the indenture for these Notes, Terex will pay holders 105.188 percent of the principal amount plus accrued and unpaid interest of approximately $38.33 per $1,000 principal amount at the redemption date. These Notes were originally issued on March 29, 2001.

Further, Terex's previously announced split of its common stock has been completed, and Terex common stock will trade on the New York Stock Exchange reflecting the 2-for-1 stock split.