WESTPORT, Conn.--(BUSINESS WIRE)--July 17, 2006--Terex Corporation
(NYSE: TEX) today 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 utilized 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.
"Our new credit agreement is an important step forward in the
evolution of Terex's capital structure," stated Phil Widman, Senior
Vice President and Chief Financial Officer. "Most importantly, the new
revolving credit facility provides the liquidity that we need to
efficiently manage our working capital needs, and allows us to
significantly reduce the large cash balances with which we have
historically operated. In addition to increased liquidity and an
extended term, the new facility has a lower cost compared to our
previous senior lending arrangement. Completing the redemption of the
10-3/8% Notes was a major component of our 2006 strategic plan and is
a significant accomplishment towards reaching our goal of eliminating
high cost debt from our capital structure."
Further, effective today, 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.
Safe Harbor Statement
This press release may contain forward-looking information based
on Terex's current expectations. Because forward-looking statements
involve risks and uncertainties, actual results could differ
materially. Such risks and uncertainties, many of which are beyond
Terex's control, include among others: Terex's business is highly
cyclical and weak general economic conditions may affect the sales of
its products and its financial results; Terex's business is sensitive
to fluctuations in interest rates and government spending; the ability
to successfully integrate acquired businesses; the retention of key
management personnel; Terex's businesses are very competitive and may
be affected by pricing, product initiatives and other actions taken by
competitors; the effects of changes in laws and regulations; Terex's
business is international in nature and is subject to changes in
exchange rates between currencies, as well as international politics;
Terex's continued access to capital and ability to obtain parts and
components from suppliers on a timely basis at competitive prices; the
financial condition of suppliers and customers, and their continued
access to capital; Terex's ability to timely manufacture and deliver
products to customers; possible work stoppages and other labor
matters; Terex's debt outstanding and the need to comply with
restrictive covenants contained in Terex's debt agreements; Terex's
ability to file its periodic reports with the SEC on a timely basis;
the previously announced SEC investigation of Terex; Terex's ability
to maintain adequate disclosure controls and procedures and adequate
internal controls over financial reporting; Terex's implementation of
a global enterprise system and its performance; compliance with
applicable environmental laws and regulations; product liability
claims and other liabilities arising out of Terex's business; and
other factors, risks, uncertainties more specifically set forth in
Terex's public filings with the SEC. Actual events or the actual
future results of Terex may differ materially from any forward looking
statement due to those and other risks, uncertainties and significant
factors. The forward-looking statements speak only as of the date of
this release. Terex expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking
statement included in this release to reflect any changes in Terex's
expectations with regard thereto or any changes in events, conditions,
or circumstances on which any such statement is based.
Terex Corporation is a diversified global manufacturer with 2005
revenue of $6.4 billion. Terex operates in five business segments:
Terex Construction, Terex Cranes, Terex Aerial Work Platforms, Terex
Materials Processing & Mining, and Terex Roadbuilding, Utility
Products and Other. Terex manufactures a broad range of equipment for
use in various industries, including the construction, infrastructure,
quarrying, surface mining, shipping, transportation, refining, and
utility industries. 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
Tom Gelston, 203-222-5943
SOURCE: Terex Corporation