Meritor Buying Back Debt

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

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.