Konecranes Terex firms $900 million term B at Libor plus 375 bps

By Sara Rosenberg

New York, Dec. 14 – Konecranes Terex plc set pricing on its $900 million-equivalent U.S. dollar and euro seven-year term loan B at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the original issue discount on the term loan widened to 98 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The loan still has a 0.75% floor.

In addition, tranching on the term loan B firmed up as $355 million and €500 million, versus talk at launch of U.S. and euro pieces with the euro size being up to €400 million.

Recommitments were due from U.S. investors at 5 p.m. ET on Monday and are due from European investors at 7 a.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Commerzbank, Credit Agricole and Nordea Bank are the leads on the credit facility (Ba2/BB+).

Along with the term loan, the company is planning on getting a $700 million multi-currency revolver.

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.

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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