Meritor Buying Back Debt

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Meritor   has launched a cash tender offer for its 8.125% notes maturing in 2015. The company is offering $1,140 in total for each $1,000 in principal value of the notes, plus accrued and unpaid interest.

The auto parts supplier is offering $30 for the early tender of the notes as well as $1,110 as tender consideration. The offer is subject to certain conditions, including Meritor's receipt of proceeds from a debt financing transaction sufficient to purchase and pay for all the accrued interest on the notes that are tendered and accepted for purchase. 

This offer expires at 12:01 a.m. New York City time on June 5.

All told, the issue has an aggregate principal amount of $251 million. Only those noteholders who tender their notes before 5:00 p.m. on May 17 New York City time will receive the early tender premium.

Citigroup's eponymous Global Markets unit is the dealer manager and solicitation agent in the tender.


The article Meritor Buying Back Debt originally appeared on

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