17.10.2005

Terex win time

Terex has obtained a waiver from its principle senior lenders to delay the filing of its 2004 year end and interim 2005 accounts until February 15, 2006. No mention is made of the cost of the waiver.

In addition, the Waiver and Amendment allows Terex the flexibility to spend up to an additional $235 million to repurchase, redeem, and prepay other lines of credit. This is in addition to existing provisions that allow Terex to repurchase ore redeem up to $200 million of its 10 3/8% senior subordinated notes on or after April 1, 2006.

This additional amount will be available subject to Terex satisfying certain conditions including a leverage ratio test.

Vertikal Comment

This waiver is similar to the one United Rentals recently obtained, click here for United story however, in this case, Terex has obtained the right to extend its main facility and buy back more expensive debt. It has also managed to obtain this waiver without enforcing or extending any deadlines. No mention is made of the cost of the waiver, which might suggest that it is a relatively nominal sum compared to a cost of well over $25 million in United’s case.