ArvinMeritor greenshoe exercised, raising convertibles to $300 million

New York, March 13 - ArvinMeritor, Inc. said the underwriters of its recent sale of 20-year convertible senior notes exercised the $40 million over-allotment option in full, raising the size of the deal to $300 million.

The company originally priced $260 million of the securities after the close on March 1 to yield 4.625% with an initial conversion premium of 35%.

UBS Investment Bank was bookrunner for the Rule 144A deal.

ArvinMeritor will use proceeds from the deal to help fund its planned buyback of up to $450 million of outstanding straight bonds. The Troy, Mich.-based car and truck parts has made a tender offer for its 6.625% notes due 2007, its 6.75% bonds due 2008, the 6.8% bonds due 2009 and the 7.125% notes due 2009.

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