Terex calls its $297.6 million of 7 3/8% senior notes due 2014

By Melissa Kory

Cleveland, Dec. 13 - Terex Corp. announced that it will redeem its outstanding $297.6 million of 7 3/8% senior notes due 2014.

The notes will be redeemed on Jan. 15 at 101.229 plus accrued interest up to the redemption date.

The redemption of these notes brings the total amount of debt repayments announced since Sept. 30 to about $570 million out of the $1.973 billion of outstanding debt at the end of the third quarter, according to the company.

The 7 3/8% notes were issued in November 2003. Holders tendered $2.359 million of Terex's original issue of $300 million of the notes as part of the company's tender offer launched Oct. 5 and expired Nov. 3. Funding came from proceeds from the sale of its mining business.

"As I have recently indicated, Terex is taking a balanced approach to capital allocation in reviewing potential acquisitions and debt reduction opportunities," Ronald M. DeFeo, chairman and chief executive officer, said in a news release.

"This note redemption, when combined with the previously announced retirement of approximately $270 million in senior bank debt in October, will provide annual interest savings of approximately $33 million."

Terex is a Westport, Conn.-based diversified manufacturer.

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