Terex ups dollar tranche to $850 million, eliminates euro tranche; books close ahead of pricing

By Paul A. Harris

Portland, Ore., Nov. 8 - Terex restructured its senior notes offering, upsizing the dollar tranche and eliminating a proposed euro-denominated tranche on Thursday, according to a syndicate source.

Under the new structure, Terex Corp. plans to sell $850 million of senior notes due May 2021 (B3/B+), upsized from $530 million.

Those notes were talked on Wednesday to yield 5¾% to 6%.

The books were expected to close at 10:30 a.m. ET, and the deal was set to price thereafter.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBS Securities Inc. and UBS Investment Bank are the joint bookrunners.

The notes, which are registered with the Securities and Exchange Commission, become callable in four years at par plus 50% of the coupon and feature a three-year 35% equity clawback and 101% poison put.

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

Prior to restructuring, the deal had been in the market as an $850 million equivalent dual-currency offering, which included a €250 million tranche of Rule 144A and Regulation S for life notes via Terex International Financial Services Co.

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