WESTPORT, Conn.--(BUSINESS WIRE)--May 31, 2006--Terex Corporation
(NYSE: TEX) today announced that it will redeem $100 million of its
$300 million 10-3/8% Senior Subordinated Notes due 2011, effective
June 30, 2006.
As set forth in the indenture for the Notes, Terex will pay
holders 105.188 percent of the principal amount plus accrued and
unpaid interest of $25.65 per $1,000 principal amount at the
redemption date. At March 31, 2006, the Notes being called represented
$100 million of the Company's $1.1 billion of debt. The Notes were
originally issued March 29, 2001. As previously stated, Terex plans to
be in a position to redeem the remaining $200 million of the 10-3/8%
Notes in the near future.
The Bank of New York, trustee for the Notes, will act as the
paying agent for the Company in connection with the redemption of the
Notes.
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, Director - Investor Relations
203-222-5943
SOURCE: Terex Corporation