04.05.2011

Terex clears funding

Terex has said that it has received loan commitments from banks to fund its €841 million hostile take-over bid for Demag Cranes.

Terex SEC filing says that a new credit agreement provides term loan commitments of $1.1 billion as well as multi-currency revolving lines of credit. Credit Suisse and Goldman Sachs are co-lead arrangers for the loan agreement.

Terex made a cash offer to Demag shareholders on Monday after talks with the company failed to make any significant progress. Terex says that the deal will create a major port equipment business, while taking it into a new non construction related sector – industrial cranes.

The deal would also give Terex a substantial service network that currently provides around a third of Demag’s revenues.