Bucyrus plans $1.075 billion term loan B, $50 million revolver add-on

By Sara Rosenberg

New York, Dec. 21 - Bucyrus International Inc. is expecting to get a $1.075 billion six-year term loan B and a $50 million revolver add-on, as well as complete an amendment and extension of its existing credit facility, company officials said in a conference call on Monday.

The transactions are in connection with the company's acquisition of Terex Corp.'s mining equipment business for $1.3 billion.

JPMorgan, Bank of America and Macquarie are the lead banks on the deal that is expected 2010 business, with JPMorgan the left lead, market sources told Prospect News.

Bucyrus has actually received a commitment for a $1.2 billion term loan B, but it plans to issue $300 million of equity to Terex to help fund the acquisition so that the more permanent capital structure includes a smaller term loan B, officials said.

The revolver add-on will be obtained under the accordion feature of the existing revolver.

By completing these financings, total liquidity will be expanded to over $500 million.

Pro forma leverage is 2.1 times, officials added in the call.

Closing on the acquisition is expected to take place during the first quarter of 2010, subject to regulatory approvals and other customary conditions.

Bucyrus is a Milwaukee, Wis.-based designer and manufacturer of high productivity mining equipment for surface and underground mining.

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