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Terex announces new $350 million securitization facility and re-pricing of euro term loans

Terex Corporation today announced that it has closed a new $350 million asset-backed securitization transaction.

The Company also announced it has completed a re-pricing of its Euro term loan that is expected to reduce its cash interest costs by approximately $1 million annually.

“We are pleased to announce the completion of our first securitization facility,” said Kevin Bradley, Terex Chief Financial Officer. “As we continue to grow and expand our Terex Financial Services (TFS) business, achieving a lower cost of funding is very important to our success. The additional liquidity afforded by this facility provides us with a new source of lower cost funds that will be deployed to help our customers secure equipment financing at competitive rates. It also strengthens our capacity to grow organically. The closing of our new securitization facility, coupled with the re-pricing of our Euro term loans, marks another milestone as we continue to improve our Company’s financial efficiency.”

The commercial paper conduit facility will finance and is secured by equipment loan and lease receivables originated by TFS in the United States and Canada. The new facility will supplement TFS’s ability to provide customer solutions for Terex equipment financing, adding to the existing underwriting, warehousing and syndication practices already in place.