Konecranes Secures Loan to Buy Terex’s MHPS
Finnish manufacturer of cranes Konecranes Plc has signed EUR 1.5 billion (USD 1.6 billion) unsecured financing facilities to fund the proposed acquisition of US-based Terex Corporation’s Material Handling & Port Solutions (MHPS) business.
The company said that the committed credit facility includes a syndicated EUR 300 million term loan with a tenor of three years, EUR 600 million amortizing term loan with a tenor of five years and EUR 400 million revolving credit facility with a tenor of five years, alongside a EUR 200 million bridge term loan facility.
Furthermore, the revolving credit facility would be used to “refinance the existing EUR 200 million revolving credit facility signed in December 2015 and the EUR 100 million revolving credit facility signed in February 2014,” Konecranes said.
The two companies postponed their merger in February 2016, and subsequently decided to terminate the initial plans and instead signed an agreement for the acquisition of Terex’s MHPS segment in mid-May.
The acquisition is subject to regulatory approvals and other closing conditions, and is expected to close in early 2017, Konecranes earlier said.
Valued at EUR 1.13 billion (USD 1.28 billion), the MHPS acquisition would improve Konecranes’ position in the Industrial Lifting & Port Solutions market, according to the company.
