Terex to raise US$ 600 million
By Chris Sleight28 May 2009
Terex has announced plans to raise US$ 600 million in new capital. It will use the proceeds to pay down debt as part of a scheme that will give it more financial flexibility with its banks.
The company plans to sell US$ 300 million of senior debt, a further US$ 150 in convertible debt and to issue 11 million new shares at US$ 13.00 each. In the event the various offers are over-subscribed, up to an additional US$ 22.5 million of the convertible loans and 1.65 million more shares will be made available.
Following these actions - the date for which has not been announced - Terex will use the proceeds to reduce its revolving credit facility by US$ 150 million and pay off US$ 58 million of loans. It also says this would eliminate some of the banking covenants it currently has.