Konecranes Terex reveals $1.65 billion senior credit facility details

By Sara Rosenberg

New York, Oct. 23 – Konecranes Terex plc filed a 10-Q with the Securities and Exchange Commission on Friday that outlined expected pricing on its proposed $1.65 billion senior secured credit facility.

The $900 million in seven-year term loan debt split between U.S. dollar and euro tranches is expected to be priced at Libor plus 300 basis points with a 0.75% Libor floor, and have 101 soft call protection for six months, the filing said.

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

Pricing on the $750 million in two five-year revolvers, split between an up to $375 million U.S. tranche and an up to $375 million multicurrency tranche, is anticipated to range from Libor plus 200 bps to 250 bps based on leverage, with a 50 bps commitment fee.

As previously reported, the company also has a commitment for a $1.15 billion one-year senior unsecured bridge loan.

Pricing on the bridge loan was outlined as Libor plus 550 bps with 50 bps step-ups every 90 days and a 1% Libor floor.

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

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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