Terex Corporation Announces Launch of Private Offering of $750 Million of Senior Notes Due 2032
Rhea-AI Summary
Terex (NYSE:TEX) has announced its intention to offer $750 million in senior notes due 2032 through a private offering exempt from SEC registration. The proceeds, along with new term loan borrowings and cash on hand, will be used to finance Terex's acquisition of Dover 's Environmental Solutions Group (ESG) and related expenses.
Concurrently, Terex is seeking to amend its existing credit agreement to increase its revolving credit facilities to $800 million from $600 million and extend their maturity. Additionally, Terex plans to establish a new term loan facility for up to $1,250 million. The notes will be offered only to qualified institutional buyers and certain non-U.S. persons, and will not be registered under the Securities Act.
Positive
- Terex is raising $750 million through senior notes offering
- Revolving credit facilities to be increased to $800 million from $600 million
- New term loan facility of up to $1,250 million to be established
- Funds will be used to finance the acquisition of Dover's Environmental Solutions Group
Negative
- Potential increase in debt load with $750 million notes offering and $1,250 million term loan
- Possible shareholder dilution if additional shares are issued to fund the acquisition
News Market Reaction – TEX
In the trading session that priced this news, TEX gained 0.32%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Terex intends to use the proceeds from the Private Offering, together with the new term loan borrowings described below and cash on hand, to consummate Terex's previously announced acquisition (the "Acquisition") of the subsidiaries and assets of Dover Corporation ("Dover") that constitute Dover's Environmental Solutions Group ("ESG"), and to pay related fees, costs and expenses.
The Notes and the related guarantees will be offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-
Concurrently with the Private Offering, Terex is also seeking to amend (the "Amendment") its existing credit agreement (i) to increase the size of its revolving credit facilities to
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or the related guarantees in any jurisdiction.
Forward Looking Statements:
This press release contains forward-looking information (within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Terex's future financial performance that involve certain contingencies and uncertainties. In addition, when included in this press release, the words "may," "expects," "should," "intends," "anticipates," "believes," "plans," "projects," "estimates," "will" and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. Terex has based these forward-looking statements on current expectations and projections about future events. These statements are not guarantees of future performance. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements.
Because forward-looking statements involve risks and uncertainties, actual results could differ materially from those risks reflected in such forward-looking statements. Such risks and uncertainties, many of which are beyond the control of Terex, include, among others, (1) the consummation and the timing of the Private Offering and the Amendment, (2) the consummation of the Acquisition and (3) those risks and uncertainties described under the caption "Risk Factors" in Terex's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 9, 2024, Terex's Quarterly Report on Form 10-Q for the quarterly period June 30, 2024 filed with the SEC on July 31, 2024 and the risk factors included in Exhibit 99.2 to Terex's Current Report on Form 8-K filed with the SEC on September 30, 2024.
Actual events or the actual future results of Terex may differ materially from any forward-looking statement due to these and other risks, uncertainties and material factors. The forward-looking statements speak only as of the date of this release. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this release to reflect any changes in expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.
About Terex:
Terex is a global manufacturer of materials processing machinery and aerial work platforms. We design, build and support products used in maintenance, manufacturing, energy, recycling, minerals and materials management, and construction applications. Certain Terex products and solutions enable customers to reduce their impact on the environment including electric and hybrid offerings that deliver quiet and emission-free performance, products that support renewable energy, and products that aid in the recovery of useful materials from various types of waste. Our products are manufactured in
Contact Information:
Derek Everitt
VP Investor Relations
Email: InvestorRelations@Terex.com
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SOURCE Terex Corporation