S&P assigns BBB- to Terex loans

Standard & Poor’s said it assigned its BBB- issue-level rating and 1 recovery rating to Terex Corp.’s proposed $600 million senior secured revolving credit facilities due 2019, which is split between a $300 million U.S. dollar denominated facility and a $300 million multicurrency facility.

At the same time, S&P assigned a BBB- issue-level rating and 1 recovery rating to the company’s proposed up to $500 million term loan facilities due 2021, which is split between a U.S. dollar tranche and an up to €200 million tranche (the borrower of the euro-denominated tranche is Terex International Financial Services Co.). The 1 recovery rating indicates an expectation for very high recovery (90%-100%) for the lenders in a payment default scenario.

The BB issue-level rating and 4 recovery rating on the senior unsecured notes remain unchanged. The 4 recovery rating indicates S&P’s expectation for average recovery (30%-50%) in the event of a payment default. The B+ issue-level rating and 6 recovery rating on the subordinated convertible notes due 2015 remain unchanged. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%) in the event of a payment default.

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