Markets
TEX

Terex Shares Gain 4% on Completion of New Credit Facility - Analyst Blog

Terex Corp. ( TEX ) has refinanced its existing senior secured credit facility with a new $1.1 billion senior secured credit facility on Aug 13. The shares of this global equipment manufacturer gained over 4% since the announcement and closed at $37.48 on Aug 19.

The new credit facility includes a revolving line of credit of $600 million, a $230 million term loan and a €200 million term loan (around $267 million) and increases the size of Terex's revolving line of credit from $500 million to $600 million.

In addition, the new facility extends the maturity date for the revolving line of credit from 2016 to 2019. The maturity of the term loans provided under the new credit facility has also been extended to 2021 from 2017.

Further, the new facility will lower Terex's borrowing rates by about 300 basis points. It will also help in enhancing operating flexibility and financial efficiency.

Terex reported a decline in cash and cash equivalents to $364 million in second-quarter 2014 compared with 2013-end. The company repurchased shares worth about $21 million under its previously authorized share repurchase program during the quarter.

Terex reiterated its 2014 earnings per share guidance in the band of $2.50-$2.80. The company however trimmed the upper end of its previous sales guidance range to $7.3-$7.5 billion. The company expects continued strength in the AWP (Aerial Work Platforms), Cranes and MHPS (Material Handling & Port Solutions) segments to drive growth in the near term.

The company will benefit from recovery in the construction sector. While weaker end-market, a lower anticipated share count and continued market uncertainty remain headwinds.

Westport, CT-based Terex is a global equipment manufacturer, catering to the construction, infrastructure and surface mining industries. The company's manufacturing facilities are located in the U.S., Canada, Europe, Australia, Asia and South America. It also offers a complete line of financial products and services to assist in the acquisition of equipment through Terex Financial Services.

Terex currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include ACCO Brands Corporation ( ACCO ), AO Smith Corp. ( AOS ) and ARC Document Solutions, Inc. ( ARC ). All these stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TEREX CORP (TEX): Free Stock Analysis Report

SMITH (AO) CORP (AOS): Free Stock Analysis Report

ACCO BRANDS CP (ACCO): Free Stock Analysis Report

ARC DOC SOLUT (ARC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TEX AOS ARC ACCO

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More