Konecranes gets €1.1 billion of term loans, €400 million revolver

By Angela McDaniels

Tacoma, Wash., Aug. 1 – Konecranes plc entered into €1.5 billion of financing facilities on Monday to fund its proposed acquisition of Terex’s material handling and port solutions business, according to a company news release.

The committed credit facility includes a syndicated €300 million three-year term loan, a €600 million five-year amortizing term loan, a €400 million five-year revolving credit facility and a €200 million bridge loan.

The new revolver will refinance the company’s existing €200 million revolver signed in December 2015 and the €100 million revolver signed in February 2014.

The underwriters, bookrunners, mandated lead arrangers and bridge loan providers are Nordea and SEB. The mandated lead arrangers are Commerzbank AG, Danske Bank A/S, Handelsbanken and OP Corporate Bank plc. The lead arrangers are BBVA, BNP Paribas, Citi, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd., London Branch, Deutsche Bank AG, Helaba, HSBC Bank plc, ING Belgium NV/SA, Raiffeisen Bank International AG, Santander Global Corporate Banking and Swedbank. SEB is facility agent.

As previously reported, Konecranes has agreed to buy the material handling and port solutions business segment for $820 million of cash and 19.6 million newly issued class B shares, which will make Terex a 25% shareholder.

The acquisition is expected to close in early 2017.

Konecranes is a Hyvinkaa, Finland-based maker of cranes and other lifting equipment. Terex is a Westport, Conn.-based diversified equipment manufacturer.

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