New Issue: Meritor prices upsized $275 million 6¾% eight-year notes at par

By Paul A. Harris

Portland, Ore., May 28 - Meritor, Inc. priced an upsized $275 million issue of eight-year senior notes (B3/B-/B-) at par to yield 6¾% on Tuesday, according to a syndicate source.

The deal was upsized from $250 million.

The yield printed on top of yield talk.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, RBS Securities Inc. and UBS Securities LLC were the joint bookrunners for the quick-to-market deal.

The Troy, Mich.-based auto components maker plans to use the proceeds to refinance its 8 1/8% senior notes due 2015 and for general corporate purposes.

Issuer:	Meritor, Inc.
Amount:	$275 million, increased from $250 million
Maturity:	June 15, 2021
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, RBS Securities Inc., UBS Securities LLC
Co-managers:	BNP Paribas Securities Corp., PNC Capital Markets LLC, Comerica Securities Inc., Huntington Investment Co., Deutsche Bank Securities Inc., Fifth Third Securities Inc.
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	501 bps
Call features:	Make-whole call at Treasuries plus 50 bps until June 15, 2016, then callable at 105.063, 103.375l, 101.688, par on and after June 15, 2019
Equity clawback:	35% at 106.75 until June 15, 2016
Change-of-control put:	101%
Trade date:	May 28
Settlement date:	May 31
Ratings:	Moody's: B3
	Standard & Poor's: B-
	Fitch: B-
Distribution:	SEC registered
Price talk:	6¾% area
Marketing:	Quick to market

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