ArvinMeritor offers new 10-year notes, cash in exchange for 6.8%, 7 1/8% notes

New York, Aug. 31 - ArvinMeritor, Inc. announced an exchange in which it will offer cash and new 10-year notes in exchange for up to $300 million of its $499 million of 6.8% senior notes due Feb. 15, 2009 and $150 million 7 1/8% senior notes due March 15, 2009.

The new senior notes will mature on Sept. 15, 2015. The coupon will be set two days before the expiration of the offer so that the price of the notes is either par or as close as possible to but below par.

ArvinMeritor will issue the same principal amount of new notes as the old notes that are accepted plus make a cash payment.

The exchange price for the old notes will be fixed using a fixed-spread formula and will be calculated at 2 p.m. ET on Sept. 26.

Included in the total set at pricing will be an early participation payment that will only be made to holders who tender by 5 p.m. ET on Sept. 14.

Expiry for the exchange is midnight ET on Sept. 28. Tendered notes can be withdrawn up to 5 p.m. ET on Sept. 14.

The exchange is subject to various conditions including the tender of at least $100 million of the old notes.

The Troy, Mich., auto parts maker is only making the exchange offer to institutional investors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.