Terex offers to buy back its 10 7/8% notes and 7 3/8% notes at par

By Angela McDaniels

Tacoma, Wash., Oct. 5 - Terex Corp. began tender offers for its $300 million of 10 7/8% senior notes due 2016 and $300 million of 7 3/8% senior subordinated notes due 2014, according to a company news release.

The company will pay par plus accrued interest up to but excluding the payment date.

The offer will expire at 3 p.m. ET on Nov. 3.

The company will fund the offer with a portion of the proceeds from the sale of its mining business.

Proceeds will also be used to prepay approximately $270 million principal amount of Terex's term loans. If the amount of proceeds left after the loan paydown and the purchase of 10 7/8% notes is less than $300 million, the amount of 7 3/8% notes to be purchased will be automatically reduced to match the remaining amount of proceeds.

HSBC Bank USA (718 488-4475) is the depositary for the offers.

Terex is a Westport, Conn.-based diversified manufacturer.

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