ArvinMeritor bought back $613 million notes, defeases 6¾% notes, 7 1/8% notes

By Jennifer Chiou

New York, Aug. 1 - ArvinMeritor, Inc. repurchased $613 million of notes, including $10 million of its $380 million of 8¾% notes at a discount, according to a 10-Q filing with the Securities and Exchange Commission.

The company completed the open-market transaction on July 6.

During the first quarter of fiscal 2006, ArvinMeritor said it also bought back $3 million of its 6.8% notes, also at a discount.

In March, the company additionally completed repurchases of $600 million of notes in a tender offer, including $195 million of its $200 million of 6 5/8% notes due in 2007, $95 million of its $100 million of 6¾% notes due in 2008, $225 million of its $302 million of 6.8% notes due in 2009 and $85 million of its $91 million of 7 1/8% notes also due in 2009.

In the third quarter of fiscal year 2006, the company added, it purchased $12 million of U.S. government securities to place in an irrevocable trust to fund payments of principal and interest on its $5 million of 6¾% notes and $6 million of 7 1/8% notes in order to defease certain covenants under the indentures.

ArvinMeritor is a Troy, Mich., supplier of a broad range of integrated systems, modules and components to the motor vehicle industry.

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