ArvinMeritor ups exchange for 6.8%, 7 1/8% notes; results unchanged despite extended early deadline

By Jennifer Chiou

New York, Sept. 16 - ArvinMeritor, Inc. said it has increased the size of its exchange offer for some of its $499 million of 6.8% senior notes due Feb. 15, 2009 and $150 million of 7 1/8% senior notes due March 15, 2009.

The company will now buy up to $350 million of the notes instead of the previous $300 million maximum.

As of its new early participation deadline of 5 p.m. ET on Sept. 16, $193.9 million of its 6.8% notes and $58.6 million of its 7 1/8% notes had been tendered for exchange.

The amounts were unchanged from its previous early participation deadline at 5 p.m. ET on Sept. 14.

As announced on Aug. 31, ArvinMeritor is offering cash and new 10-year notes for the existing notes.

The new senior notes will mature on Sept. 15, 2015. The coupon will be set two days before the expiration of the offer so that the price of the notes is either par or as close as possible to but below par.

ArvinMeritor will issue the same principal amount of new notes as the old notes that are accepted plus make a cash payment.

The exchange price for the old notes will be fixed using a fixed-spread formula and will be calculated at 2 p.m. ET on Sept. 26.

Those who exchanged their holdings by the extended early participation deadline will receive an early participation payment, which is included in the total set at pricing.

The offer ends at midnight ET on Sept. 28.

The Troy, Mich., auto parts maker is only making the exchange offer to institutional investors.

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