WESTPORT, Conn.--(BUSINESS WIRE)--May. 27, 2009--
Terex Corporation (NYSE:TEX) announced today that it has reached
agreement on an amendment to its bank credit facility, with the
effectiveness of the amendment being conditional on the successful
completion of its previously announced capital markets transactions.
Pursuant to the amendment, Terex would reduce its domestic revolving
credit commitments under the credit facility by $150 million, prepay
approximately $58 million principal amount of its term loans under the
credit facility, and increase the interest rates charged under its
credit facility. The amendment would also eliminate certain existing
financial covenants dealing with the Company’s consolidated leverage
ratio and consolidated fixed charge coverage ratio, and instead require
the Company to maintain liquidity of not less than $250 million on the
last day of each fiscal quarter through June 30, 2011, and thereafter,
maintain a specified senior secured leverage ratio.
Additionally, the amendment provides the Company added flexibility in
various restrictive covenants, limits the Company’s ability under
certain circumstances to repurchase stock, pay dividends or redeem debt,
and requires the Company to provide certain collateral to secure its
obligations under the credit facility.
Safe Harbor Statement
This press release contains forward-looking information based on the
current expectations of Terex Corporation. Because forward-looking
statements involve risks and uncertainties, actual results could differ
materially. Actual events or the actual future results of Terex may
differ materially from any forward-looking statement due to these and
other risks, uncertainties and significant factors. The forward-looking
statements speak only as of the date of this presentation. Terex
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statement included in
this presentation to reflect any changes in 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 2008 net
sales of $9.9 billion. Terex operates in four business segments: Terex
Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex
Materials Processing & Mining. 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.
Source: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943
Vice President,
Investor Relations
thomas.gelston@terex.com
or
Kurt
Goddard, 203-222-6160
Manager, Investor Relations
kurt.goddard@terex.com