Meritor to redeem $23.29 million 7.875% convertible notes due 2026

By Taylor Fox

New York, Oct. 16 – Meritor, Inc. plans to redeem all of its outstanding $23,285,000 aggregate accreted principal amount of 7.875% convertible senior notes due 2026, according to a news release.

The notes will be redeemed Dec. 1 at par, plus interest.

As a result of the redemption, 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.

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 Bank of New York Mellon Co, NA is the trustee and conversion agent.

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

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