Meritor’s 7.875% notes due 2026 convertible through Dec. 31

By Wendy Van Sickle

Columbus, Ohio, Sept. 30 – Meritor, Inc. said holders may convert their 7.875% convertible senior notes due 2026 from Oct. 1 through the close of business on Dec. 31.

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 Sept 30 was greater than 120% of the conversion price in effect on that date.

The company’s stock (NYSE: MTOR) closed at $20.94 on Sept. 30.

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

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