Meritor bought $25 million of its 7.875% convertible notes in July

New York, Aug. 11 – Meritor, Inc. repurchased $25 million of its 7.875% convertible notes due 2026 during July, bringing the total buybacks of the security to $110 million, according to an 8-K filing with the Securities and Exchange Commission.

The July transactions were at an average price of 158% of par, costing the company $40 million in total.

In June Meritor bought $85 million of the convertibles at an average price of 164% of par for a total expenditure of $139 million.

Funding for the repurchases came from June’s sale of $225 million of 6.25% high-yield notes.

Meritor’s board of directors authorized the company to buy up to $175 million principal amount of the convertibles at a meeting on May 18, according to a previous 10-Q filing with the SEC.

As previously disclosed, the company also has a repurchase authorization covering up to $210 million of equity and equity-linked securities dating from June 2014. In the quarter ended June 30 the company bought $19 million of its 4% convertible notes due 2027.

On Jan. 22, 2015, the directors also approved a repurchase program for up to $150 million of debt securities.

Meritor is a Troy, Mich.-based auto components manufacturer.

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