Terex Establishes Share Repurchase Program, Redeems Notes

December 15, 2006 •Terex Corp., Westport, Conn., announced its board of directors has authorized a share repurchase program, under which the company may purchase up to $200 million of its outstanding common shares through June 30, 2008. Purchases may be made at the company's discretion from time-to-time in open-market transactions at prevailing prices or through privately negotiated transaction as conditions permit.

 

Terex also announced that it will redeem all $200 million principal amount outstanding of its 9-1/4% senior subordinated notes due 2011, effective Jan. 15, 2007. As set forth in the indenture for these notes, Terex will pay holders 104.6% of the principal amount, plus accrued and unpaid interest up to the redemption date. As of Sept. 30, 2006, the notes being called represented $200 million of Terex's $792 million of long-term debt. These notes were originally issued in December 2001.

 

According to Ronald M. DeFeo, chairman and chief executive officer of Terex, the company's strong financial position has allowed them to initiate the stock repurchase program. “The decision to repurchase shares demonstrates our commitment to enhancing shareholder value and our confidence in the performance and future prospects of Terex,” DeFeo said. “In addition to implementing the share repurchase program, we are pleased that we will achieve our announced goal of prepaying $200 million in senior subordinated notes in January 2007. Based on the prospects of continued strong operating results and cash flow, we will continue to seek to further enhance shareholder value through selective strategic intiatives.”