WESTPORT, Conn.--(BUSINESS WIRE)--Nov. 25, 2003--Terex Corporation
(NYSE: TEX) today announced that it has completed the issuance of
$300,000,000 principal amount of 7.375% Senior Subordinated Notes due
2014. As previously announced on November 10, 2003, the notes were
issued with a coupon of 7.375% and a yield to maturity of 7.5%. Terex
used $100,000,000 of the proceeds from the issuance of the notes to
prepay a portion of its existing bank term loans. Terex also prepaid
an additional $100,000,000 of its existing bank term loans with cash
on hand.
Terex also completed an amendment of its existing bank credit
facility. The amendment, among other things, permits the redemption of
Terex's 8.875% Senior Subordinated Notes due 2008 with proceeds from
the issuance of the new notes, allows for the repurchase of Terex's
10.375% Senior Subordinated Notes due 2011 on or after April 1, 2006,
and modifies certain financial covenants for the second half of 2004
and 2005.
Terex announced today that it will redeem the remaining outstanding $200,000,000 in principal amount of its 8.875% Senior Subordinated Notes due 2008 with the remaining proceeds from the issuance of the new notes and cash on hand. The 8.875% Senior Subordinated Notes will be redeemed at a price of 104.438% of principal amount, for a total of approximately $208,900,000. The date for redemption of the 8.875% Senior Subordinated Notes has been set for December 26, 2003.
The result of these transactions will be to reduce total debt by
$100,000,000.
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: Terex Corporation
Investor Relations:
Tom Gelston, 203-222-5943
SOURCE: Terex Corporation