DOW JONES NEWSWIRES
Terex Corp. (TEX) has reached an agreement on an amendment to
its bank credit facility that gives the company added
flexibility.
Under the amendment, the heavy-equipment maker would reduce its
domestic revolving credit commitments under the credit facility by
$150 million, prepay about $58 million on its term loans under the
credit facility and increase interest rates charged under its
credit facility.
The amendment also would eliminate some financial covenants,
instead requiring the company to maintain liquidity of not less
than $250 million on the last day of each fiscal quarter through
June 30, 2011.
In addition, the amendment provides Terex added flexibility in
various restrictive covenants; limits its ability under certain
circumstances to repurchase stock, pay dividends or redeem debt;
and requires the company to provide certain collateral to secure
its obligations under the credit facility.
Earlier Wednesday, Moody's Investors Service cut its ratings on
Terex two notches, reflecting the economic downturn's effect on the
company's business. The move comes less than a week after Standard
& Poor's Ratings Services cut its ratings on the company a
notch to BB-.
Terex's shares fell 3.8% to $14.80 in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com