Credit Suisse First Boston and Citibank filled up the seven-year, $375 million "B" loan for Terex and even executed a 1/2% reverse flex to LIBOR plus 2%. The loan refinances debt and backs the acquisition of Germany's Demag Mobile Cranes.
The quick fill surprised some buysiders and bankers, who pointed to problems in the European--and especially the German--construction markets. "I would have expected at least 3% over LIBOR in this market, and even 4% in normal times," one buysider said. But a rival banker pointed out that the credit has a BB-/Ba3 rating, which is a strong pull in this market, and there is a niche with the products. "The construction industry is on the downside, but it is a good asset," he said. CSFB bankers declined to comment. Citi bankers did not return calls.