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13.12.2010

Terex to redeem more debt

Terex has announced that it will redeem the entire $297.6 million amount outstanding on its 7-3/8 percent Senior Subordinated Notes due 2014. The redemption will be effective January 15th, 2011.

Terex will pay holders 101.23 percent of the principal amount, plus all interest due up to the redemption date. The notes were originally issued in November 2003.

The calling of these notes brings the total amount of debt repayments that Terex has announced since the end of September to $570 million. This from the total debt at that time of just under $2 billion.

Terex chief executive Ron DeFeo, said: “As I have recently indicated, Terex is taking a balanced approach to capital allocation in reviewing potential acquisitions and debt reduction opportunities. Our liquidity position allows us to pursue attractive bolt-on acquisitions while also improving our balance sheet and significantly reducing our interest expense. This note redemption, when combined with the previously announced retirement of approximately $270 million in senior bank debt in October, will provide annual interest savings of $33 million. While we continue to consider appropriately priced acquisitions to further enhance shareholder value, it remains difficult to predict the timing of any potential transactions.”

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