Terex Corporation, listed on the NYSE under the symbol TEX, has announced its plans to launch a private offering of $750 million in senior notes due 2032. The purpose of this offering, which is exempt from the registration requirements of the Securities Act of 1933, is to facilitate the acquisition of the subsidiaries and assets of Dover Corporation that constitute Dover’s Environmental Solutions Group (ESG), as well as to cover related fees, costs, and expenses.
Simultaneously, Terex is seeking to amend its existing credit agreement to increase the size of its revolving credit facilities to $800 million from $600 million and to extend the maturity of its revolving credit facilities to the fifth anniversary of the acquisition's closing. Additionally, the company aims to provide for a new term loan facility, which will mature on the seventh anniversary of the acquisition's closing, with expected term loans of up to $1,250 million.
It is important to note that the notes and the related guarantees will be offered and sold only to qualified institutional buyers and certain non-U.S. persons, and have not been registered under the Securities Act or any state securities laws.
As of the most recent reporting period, Terex Corporation reported a total debt of $1.56 billion, with a debt-to-equity ratio of 1.08. The company's cash and cash equivalents stood at $572.3 million, while its operating cash flow was $328.7 million.
In the previous quarter, Terex Corporation reported a 14% increase in revenue, reaching $1.2 billion, driven by strong performance in its Material Processing and Aerial Work Platforms segments. The company's net income also saw a significant uptick, rising by 38% to $67.5 million.
These proposed financial moves by Terex Corporation indicate a strategic effort to fund its acquisition plans and bolster its financial position, potentially impacting its future balance sheet and cash flow metrics. As a result of these announcements, the company's shares have moved 0.3% on the market, and are now trading at a price of $52.91. If you want to know more, read the company's complete 8-K report here.
