New Issue: Terex prices $850 million notes due May 2021 at par to yield 6%

By Paul A. Harris

Portland, Ore., Nov. 8 - Terex Corp. priced a restructured $850 million senior notes transaction on Thursday, according to a syndicate source.

Terex priced its senior notes due May 15, 2021 (B3/B+/) at par to yield 6%, at the wide end of the 5¾% to 6% yield talk.

The dollar notes tranche was upsized from $530 million. However a €250 million tranche, which was to be issued by Terex International Financial Services Co., was eliminated.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBS Securities Inc. and UBS Investment Bank were the joint bookrunners for the quick-to-market deal.

The Westport, Conn.-based diversified manufacturer plans to use the proceeds to fund the tender offer for its 8% senior subordinated notes.

Issuer:	Terex Corp.
Amount:	$850 million, increased from $530 million
Maturity:	May 15, 2021
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBS Securities Inc., UBS Securities LLC
Lead manager:	Commerz Markets LLC
Co-managers:	Barclays, Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC
Coupon:	6%
Price:	Par
Yield:	6%
Spread:	464 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2016, then callable at 103, 101.5, par on and after Nov. 15, 2018
Equity clawback:	35% at 106 until Nov. 15, 2015
Trade date:	Nov. 8
Settlement date:	Nov. 26
Ratings:	Moody's: B3
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	5¾% to 6%
Marketing:	Quick to market

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