Navistar to Float Convertible Notes Issue
Navistar International is tapping the markets in an attempt to raise some capital. The company announced today it will float a $200 million issue of senior subordinated convertible notes that mature in 2018. These will be distributed to "qualified institutional buyers," according to a company press release. Navistar said will also grant the initial buyers a 30-day option to purchase up to $30 million worth of the notes.
Navistar will combine the net proceeds from the offering with $270 million in loans from a subsidiary, using the total for "general corporate purposes." These may include capital expenditures and the repurchase of some of outstanding 3% convertible notes that mature next year.
Navistar has nearly 80.5 million shares outstanding, and its stock currently trades at $37.64 per share.
The article Navistar to Float Convertible Notes Issue originally appeared on Fool.com.Fool contributor Eric Volkman has no position in Navistar. Nor does The Motley Fool. 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.