Konecranes Terex gets credit facility and bridge loan commitments

By Sara Rosenberg

New York, Aug. 13 – Konecranes Terex plc has received a commitment for a $1.65 billion senior secured credit facility and a $1.15 billion senior unsecured bridge loan, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Credit Suisse Securities (USA) LLC is the lead bank on the debt.

The credit facility consists of $750 million in two revolvers and a $900 million term loan split between U.S. dollar and euro tranches.

The euro portion of the term loan can be sized at up to €450 million.

Proceeds will be used to help fund the merger of Terex Corp. and Konecranes plc, and to refinance existing bank facilities at both companies as needed.

Leverage will be 2.3 times net financial debt to EBITDA.

The combined company, named Konecranes Terex plc, has estimated pro forma 2014 revenues of $10 billion and estimated pro forma 2014 EBITDA of $845 million.

Upon completion of the transaction, Terex shareholders will own about 60% of the combined company, and Konecranes shareholders will own around 40%.

Closing is expected in the first half of 2016, subject to approval by Terex and Konecranes shareholders, regulatory approvals and customary conditions.

Konecranes is a Hyvinkaa, Finland-based provider of lifting solutions as well as services for lifting equipment and machine tools of all makes. Terex is a Westport, Conn.-based diversified equipment manufacturer.

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