Terex Corp. last week announced that it will redeem all $297.6 million principal amount outstanding of its 7 3/8-percent senior subordinated notes due 2014, effective Jan. 15, 2011. As set forth in the indenture for these notes, Terex will pay holders 101.229 percent of the principal amount plus accrued and unpaid interest up to the redemption date. The calling of these notes brings the total amount of debt repayments announced since Sept. 30, to approximately $570 million from the outstanding indebtedness at the end of the third quarter of approximately $1,973 million. These notes were originally issued in November 2003.
“As I have recently indicated, Terex is taking a balanced approach to capital allocation in reviewing potential acquisitions and debt reduction opportunities,” said Ronald DeFeo, chairman and CEO of Terex. “Our liquidity position allows us to pursue attractive bolt-on acquisitions while also improving our balance sheet and significantly reducing our interest expense. This note redemption, when combined with the previously announced retirement of approximately $270 million in senior bank debt in October, will provide annual interest savings of approximately $33 million. While we continue to consider appropriately priced acquisitions to further enhance shareholder value, it remains difficult to predict the timing of any potential transactions.”
Terex Corp., Westport, Conn., is a diversified global manufacturer operating in four business segments: Aerial Work Platforms, Construction, Cranes, and Materials Processing.