Terex Cuts Term Loan Rate to SOFR Plus 1.75% in Credit Agreement Amendment
Terex and certain subsidiaries entered into Amendment No. 3 to their Amended and Restated Credit Agreement on August 12, 2025, lowering the spread on U.S. dollar term loans. The company says the re-pricing is expected to reduce cash interest costs by about $3 million annually, a modest benefit to shareholders.
- U.S. dollar term loans now bear interest at SOFR plus 1.75%, down from SOFR plus 2.00%.
- Spread on revolving loans was reduced by 12.5 to 25 basis points.
- Terex International Financial Services Company Unlimited Company was removed as a borrower.
- Company expects annual cash interest cost reduction of approximately $3 million.