WESTPORT, Conn.--(BUSINESS WIRE)--Nov. 10, 2003--Terex Corporation
(NYSE: TEX) today announced that it priced $300,000,000 principal
amount of Senior Subordinated Notes due 2014. The notes will be issued
with a coupon of 7.375% and will have a yield to maturity of 7.5%.
Terex intends to use the net proceeds from the offering to prepay the
remaining $200,000,000 in principal amount outstanding of its 8.875%
Senior Subordinated Notes due 2008 and to prepay approximately
$100,000,000 of its existing bank term loans. Terex also intends to
prepay an additional $100,000,000 of its existing bank term loans with
cash on hand. The result of these transactions will be to reduce total
debt by $100,000,000. In addition, $200,000,000 in principal amount of
the Notes will be swapped to a floating rate similar to that paid by
Terex under its existing credit facility. The transactions are
expected to close during the fourth quarter of 2003. Terex will take a
pre-tax charge of approximately $5,500,000 in the fourth quarter due
to the early retirement of existing debt.
In connection with the offering of the new Notes, Terex is seeking
to amend its existing bank credit facility. The closing of the Notes
offering is conditioned upon Terex gaining approval of the amendment
to its bank credit facility. Terex expects that the amendment will,
among other things, permit the redemption of the 8.875% Senior
Subordinated Notes due 2008 with proceeds from this offering, allow
for the repurchase of Terex's 10.375% Senior Subordinated Notes due
2011 on or after April 1, 2006, and modify certain financial covenants
for the second half of 2004 and 2005.
It is intended that Terex Corporation will offer these Senior
Subordinated Notes pursuant to Rule 144A promulgated under the
Securities Act of 1933, as amended (the "Act"), and that they will not
initially be registered under the Act. Accordingly, these Senior
Subordinated Notes will not be able to be offered or sold in the
United States absent registration under the Act or an applicable
exemption from the registration requirements. This press release does
not constitute an offer to sell, or the solicitation of an offer to
buy, any securities of Terex Corporation.
Terex Corporation is a diversified global manufacturer based in
Westport, Connecticut, with 2002 revenues of $2.8 billion. Terex is
involved in a broad range of construction, infrastructure, recycling
and mining-related capital equipment under the brand names of Advance,
American, American Truck, Amida, Atlas, Bartell, Bendini, Benford,
Bid-Well, B.L. Pegson, Canica, Cedarapids, Cifali, CMI, Coleman
Engineering, Comedil, CPV, Demag, Fermec, Finlay, Franna, Fuchs,
Genie, Grayhound, Hi-Ranger, Italmacchine, Jaques, Johnson-Ross,
Koehring, Load King, Lorain, Marklift, Matbro, Morrison, Muller, O&K,
Peiner, Powerscreen, PPM, Re-Tech, RO, Royer, Schaeff, Simplicity,
Square Shooter, Tatra, Telelect, and Terex. Terex offers a complete
line of financial products and services to assist in the acquisition
of Terex equipment through Terex Financial Services. More information
on Terex can be found at www.terex.com.
CONTACT: Investor Relations
Terex Corporation
Tom Gelston, 203-222-5943
SOURCE: Terex Corporation