Terex redeems $172.5 million of 6% notes due 2021 after tender offer

By Susanna Moon

Chicago, Feb. 21 – Terex Corp. redeemed the remaining $172.5 million principal amount of its 6% senior notes due 2021 last Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The total redemption price was $180.3 million, including a call premium of $5.2 million and accrued interest of $2.6 million.

HSBC Bank USA, NA is the trustee and paying agent.

The redemption was funded with cash on hand, including proceeds from the issue of 5 5/8% senior notes due 2025 on Jan. 31.

As announced Jan. 31, investors had tendered $377.45 million principal amount of the 6% senior notes as of 5 p.m. ET on Jan. 30, the early tender date.

Concurrently with the offer, Terex issued a conditional notice of redemption for the remaining notes at a redemption price of 103% plus accrued interest, subject to a financing condition.

Terex was tendering for up to $550 million principal amount of the notes from Jan. 17 until Feb. 13 at a total purchase price of $1,031.25 for each $1,000 principal amount.

The total payment includes an early tender premium of $10.00 per $1,000 principal amount of notes tendered by the early deadline.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

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