Terex Corp., a manufacturer of heavy equipment, has closed on its first asset-backed commercial paper conduit.

The $350 million facility will finance and is secured by equipment loan and lease receivables originated by its subsidiary, Terex Financial Service, in the United States and Canada.

Credit Suisse is the bookrunner for the transaction.

The company has also re-priced the €200 million ($218.5 million) Euro-denominated tranche of its term loan, a move that it expects to reduce its cash interest costs by approximately $1 million annually.

“As we continue to grow and expand our Terex Financial Services business, achieving a lower cost of funding is very important to our success,” Kevin Bradley, the company’s chief executive, said in a statement published Monday.

“The additional liquidity afforded by this facility provides us with a new source of lower cost funds that will be deployed to help our customers secure equipment financing at competitive rates. It also strengthens our capacity to grow organically.”

Terex, which is rated ‘B1’ by Moody’s Investors Service and  ‘BB’  by Standard & Poor’s, makes a broad range of heavy equipment for a the construction, infrastructure, quarrying, recycling, surface mining, shipping, transportation, refining, utility and maintenance industries.

The company’s other debt includes $600 million revolving credit and a $400 million dollar denominated term loan due 2021, both of which were secured in 2014.

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