Terex launches new $210 million term loan C Tuesday

By Sara Rosenberg

New York, Sept. 17 - Terex Corp. held a bank meeting on Tuesday morning regarding its new $210 million term loan C, a company spokesman told Prospect News. Credit Suisse First Boston and Salomon Smith Barney are the lead banks on the deal.

The term loan has an interest rate of Libor plus 250 basis points and matures on Dec. 31, 2009, according to the spokesman. The facility is expected to close by the end of the month.

Early in the summer, the Westport, Conn. maker of capital equipment closed on a $675 million credit facility, which was used to help finance the acquisition of Demag Mobile Cranes GmbH & Co. KG and to refinance Terex debt. At that time, the company priced its term loan B with an interest rate of Libor plus 200 basis points. The fifty basis point difference between the term B and the term C may be attributed to market conditions being less favorable at the present moment, the spokesman explained.

Proceeds from the new term C will be used to help fund the acquisition of Genie Holdings Inc. and to refinance Genie debt.

Moody's Investors Service rates the loan Ba3. Standard & Poor's rates it BB-.

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