Terex has raised USD612m, including USD300m from senior notes due to mature on 1 June, 2016, USD172.5m from senior subordinated convertible notes and the sale of 12.65 million shares of common stock priced at USD13 to the public.
Underwriters were offered the option to purchase an additional 1.65 million common stock shares on top of the original offering of 11 million, as well as an additional USD22.5m of convertible notes. The underwriters exercised both those options.
The completion of the financing has now triggered an amendment to Terex’s bank credit facility. This amendment will see Terex reduce its domestic revolving credit commitments under the credit facility by USD150m, prepay approximately USD58m principal amount of its term loans under the credit facility and increase the interest rates charged under its credit facility. The amendment will also eliminate certain existing financial covenants dealing with the company’s consolidated leverage ratio and consolidated fixed charge coverage ratio, and instead require the company to maintain liquidity of not less than USD250m on the last day of each fiscal quarter through 30 June, 2011, and thereafter maintain a specified senior secured leverage ratio.
In a corporate presentation, Terex said the financing strengthens its position for the recovery and will be coupled with continued cost structure optimisation and cash generation. It has bolstered its pro forma liquidity “significantly” to USD1.3bn.
