Meritor’s 7.875% senior notes due 2026 convertible through June 30

By Sarah Lizee

Olympia, Wash., March 31 – Meritor, Inc. said holders may convert their 7.875% convertible senior notes due 2026 from April 1 through the close of business on June 30.

The notes may be converted at a rate of 83.3333 shares of common stock per $1,000 principal amount at maturity, representing a conversion price of about $12.00 per share, according to a press release.

Conversions will be settled in cash up to the principal amount of the notes and cash, stock or a combination for the remaining value, at the company’s option.

The notes are convertible because the closing price of shares of the company’s common stock for at least 20 trading days during the 30 consecutive trading-day period ended on March 31 was greater than 120% of the conversion price in effect on that date.

The company’s stock (NYSE: MTOR) closed at $13.25 on March 31.

Meritor is a Troy, Mich., supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets.

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