Navistar to assume 4.75% convertible from subsidiary

New York, May 11 - Navistar International Corp. said it plans to assume the $220 million 4.75% convertible subordinated notes due 2009 from its finance subsidiary Navistar Financial Corp. as part of a refinancing transaction.

The Warrenville, Ill., truck maker will receive $170 million in cash from the subsidiary as compensation for assumption of the debt. Navistar previously received $50 million from the finance subsidiary as compensation for providing the shares in case the bonds convert.

Under the proposed refinancing, Navistar is planning to refinance its $250 million 8% senior subordinated notes due 2008.

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