New Issue: Meritor prices $225 million tap of 6¼% notes due 2024 at par

By Paul A. Harris

Portland, Ore., June 8 – Meritor, Inc. priced a $225 million add-on to its 6¼% senior notes due Feb. 1, 2024 (B2/B-) at par to yield 6¼% in a quick-to-market Monday transaction, according to market sources.

The reoffer price came on top of price talk.

BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, Lloyds and BNP Paribas Securities Corp. were the joint bookrunners.

The Troy, Mich.-based auto components manufacturer plans to use the proceeds to fund the purchase of an annuity to satisfy its obligations under a German pension plan for its employees and to replenish cash on hand used to repurchase about $78 million of its 7 7/8% convertible senior notes due 2026, and also for general corporate purposes.

Issuer:	Meritor, Inc.
Amount:	$225 million
Maturity:	Feb. 1, 2024
Security description:	Add-on to 6¼% senior notes due Feb. 1, 2024
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, Lloyds, BNP Paribas Securities Corp.
Co-managers:	Fifth Third Bank, Comerica, Huntington, PNC Capital Markets
Coupon:	6¼%
Price:	Par
Yield:	6¼%
First call:	Feb. 15, 2019 at 103.125
Trade date:	June 8
Settlement date:	June 11
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	SEC registered
Price talk:	Par area
Marketing:	Quick to market
Original issue:	$225 million priced at par in February 2014
Total issue size:	$450 million

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