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Bred by Rex Ellsworth, Terrang's dam was Flying Choice, a daughter of the good runner Flying Heels whose sire was the 1925 Kentucky Derby winner, Flying Ebony. His British-born sire Khaled was a winner of England's Coventry, Middle Park, and St. James's Palace Stakes. Imported to the United States by Ellsworth, Khaled was an outstanding stallion who also sired U.S. Racing Hall of Fame inductee, Swaps.