Navistar plans $350 million five-year convertibles to yield 4.25%-4.75%, up 57.5%-62.5%

By Rebecca Melvin

New York, March 18 - Navistar International Corp. plans to price $350 million of five-year convertible senior notes after the market close Tuesday that were talked to yield 4.25% to 4.75% with an initial conversion premium of 57.5% to 62.5%, according to a syndicate source.

The Rule 144A offering has a $52.5 million over-allotment option for the purchase of additional notes.

The offering was being sold via J.P. Morgan Securities LLC (active), Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, and BofA Merrill Lynch as joint bookrunners.

The bonds are non-callable for three years and then provisionally callable if shares exceed 130% of the conversion price.

Proceeds will be used to retire a portion of the company's outstanding 3% convertible senior notes due October 2014.

The Lisle, Ill.-based Navistar is a truck, bus, military vehicle and diesel engine maker.

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