Morning Commentary: Older Meritors quiet on news of new $300 million deal; Nabors edges higher

By Rebecca Melvin

New York, Sept. 18 – Meritor Inc.’s two existing convertible issues were quiet early Monday despite news that the Troy, Mich.-based commercial vehicle supplier is pricing $300 million of new 20-year convertibles after the market close on Tuesday.

“Neither one is trading. It’s incredibly slow,” a New York-based trader said of the two older Meritor bonds.

The company has convertibles due 2026 with a 7.875% coupon and a convertible with a 6.25% coupon.

A second market source said that Meritor is expected to take out old debt with proceeds of the new deal, so it will be comprised mostly of current holders rolling over into the new bond.

Elsewhere there was some trading of Nabors Industries Ltd.’s convertibles around 77.625, which was up from 77.25 earlier.

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