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Meritor gets enough early tenders to amend $251 million 8 1/8% notes
By Susanna Moon
Chicago, May 20 - Meritor, Inc. said it extended the early tender time in the offer for its $251,037,000 of outstanding 8 1/8% notes due 2015.
Holders may now tender notes until 5 p.m. ET on May 23 to receive the total purchase price, pushed out from 5 p.m. ET on May 17, but tendered notes may no longer be withdrawn.
As of 5 p.m. ET on May 17, the company had received tenders for $165,218,000 principal amount, or 65.8%, of the outstanding principal amount of notes.
Based on the consents received, Meritor will execute a supplemental indenture to amend the notes to eliminate substantially all of the restrictive covenants and events of default, but the supplemental indenture will not become operative until Meritor has settled the early tendered notes, according to a company press release.
The tender offer will continue until 12:01 a.m. ET on June 5. The offer began May 8.
As noted before, the total purchase price will be $1,140 for each $1,000 principal amount of notes tendered by the early date, which includes a consent payment of $30.00 per $1,000 of notes.
Those who tender their notes after the early deadline will receive $1,110 per $1,000 of notes.
The company also will pay accrued interest to but excluding the settlement date.
Tendered notes may be withdrawn by the consent deadline.
Holders who tender their notes will be deemed to have delivered consents, and holders may not tender notes without delivering consents.
The offer is conditioned on Meritor receiving enough proceeds from a debt financing to fund the offer but is not conditioned on a minimum amount of notes being tendered.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 937-2200 or collect 212 430-3774) is the depositary and the information agent.
Meritor is a Troy, Mich.-based auto components maker.
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