Meritor increases credit agreement commitments, resets debt limits

By Tali Rackner

Norfolk, Va., June 6 – Meritor, Inc. entered into the third amendment to its second amended and restated credit agreement with ArvinMeritor Finance Ireland and administrative agent JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The June 2 amendment increases the commitment of lender BNP Paribas by about $6.65 million and allows the company to execute certain internal restructuring plans, including the release of certain guarantors when required by such plans.

The amendment also resets the amount of certain permitted unsecured debt under the debt covenant to $200 million, resets and increases the amount of certain permitted investments in foreign subsidiaries under the investments covenant to $250 million, resets the amount of certain other permitted investments under the investments covenant to $200 million and resets the amount of certain permitted acquisitions under the acquisitions covenant to $100 million, in each case as of June 2.

Meritor is a Troy, Mich.-based auto components manufacturer.

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