Terex holders tender $377.45 million of 6% notes due 2021 to date

By Susanna Moon

Chicago, Jan. 31 – Terex Corp. said investors had tendered $377.45 million principal amount of its $850 million outstanding 6% senior notes due 2021 as of 5 p.m. ET on Jan. 30, the early tender date.

As announced Jan. 17, Terex is tendering for up to $550 million principal amount of the notes until 11:59 p.m. ET on Feb. 13.

The total purchase price will be $1,031.25 for each $1,000 principal amount of notes tendered by the early deadline.

The total payment includes an early tender premium of $10.00 per $1,000 principal amount.

Holders who tender after the early deadline will receive $1,021.25 per $1,000 of notes.

The issuer also will pay accrued interest up to but excluding the settlement date of Jan. 31 for early tendered notes and Feb. 14 for remaining tenders.

Tendered notes may no longer be withdrawn as of the early deadline.

If the tender cap is unmet, Terex plans to redeem any remaining notes up to the cap.

Concurrently with the offer, Terex issued a conditional notice of redemption for any and all of the remaining notes at a redemption price of 103% plus accrued interest, subject to a financing condition.

Terex will redeem the remaining notes on Feb. 15.

In addition, Terex issued a notice of partial redemption on Jan. 4 for $300 million of the notes at a redemption price of 103% plus accrued interest to the redemption date of Feb. 3.

Terex will fund the offer with proceeds from new financing along with cash on hand, according to a previous company announcement.

As reported, Terex priced an upsized $600 million issue of eight-year senior notes (BB) at par to yield 5 5/8% on Jan. 17, with settlement on Tuesday.

The tender agent and information agent is Global Bondholder Services (866 470-4300). Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) and Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-1862) are the dealer managers.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

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