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Meritor plans to sell $150 million discounted convertible notes due 2026 to yield 7.5%-8%
By Rebecca Melvin
New York, Nov. 28 - Meritor Inc. launched a private offering of $150 million of 13.5-year convertible senior notes, which will be coming at a discounted price of 90 after the market close Wednesday and were talked to yield 7.5% to 8%, according to market sources.
The initial conversion price of the notes is $12.00.
There is a $22.5 million greenshoe.
The deal is being sold via joint bookrunners BNP Paribas, UBS Investment Bank, J.P. Morgan Securities LLC and RBS Securities Inc.
The bonds are non-callable until Dec. 1, 2020, with a put in year eight. There is dividend and takeover protection.
Proceeds of the Rule 144A offering will be used to repay debt and for general corporate purposes.
Meritor is a Troy, Mich.-based auto components maker.
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