By Ronda Fears
Nashville, Tenn., March 19 - Navistar Finance Corp. sold $200 million of seven-year exchangeable notes that convert into Navistar International Corp. stock at par to yield 4.75% with a 30% initial conversion premium. Banc of America Securities and Salomon Smith Barney were joint lead managers of the Rule 144A deal, which sold at the aggressive end of price talk that had been tightened before pricing.
Revised price talk put the yield at 4.75% to 5.0% and initial conversion premium at 27.5% to 30%, versus original talk of 5.0% to 5.5% yield and a 22.5% and 27.5% premium. Pricing was advanced by a day.
Navistar Finance said it would use proceeds for general corporate purposes. Warrenvillle, Ill.-based Navistar International is the largest U.S. truck and midrange diesel engine maker.
Terms of the new deal are:
Issuer: Navistar Finance Corp.
Amount: $200 million
Greenshoe: $20 million
Lead Managers: Banc of America Securities and Salomon Smith Barney
Co-Managers: Credit Suisse First Boston, JPMorgan and Scotia Capital Markets
Maturity Date: March 29, 2009
Coupon: 4.75%
Issue Price: par
Yield: 4.75%
Conversion Premium: 30%
Conversion Price: $55.731
Conversion Ratio: 17.9437
Call: non-callable for three years, then at 102.375, 101.58, 100.79 and par
Expected Ratings: Moody's: Ba2
| S&P: BB-
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| Settlement Date: | March 25
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