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ArvinMeritor tenders for up to $450 million notes
By Jennifer Chiou
New York, Feb. 27 - ArvinMeritor, Inc. announced the start of tender offers for up to $450 million of its notes, including $200 million of its 6 5/8% notes due 2007, $100 million of its 6¾% notes due 2008, $91.4 million of its 7 1/8% notes due 2009 and $302 million of its 6.8% notes due 2009.
The total outstanding amount of notes is about $693 million.
The offers will end at 11:59 p.m. ET on March 27, unless extended.
For the 6 5/8% notes, the company said it will pay an amount based on yield to maturity of the 3 5/8% Treasury due June 30, 2007 and 87.5 basis points, including a $15.00 early tender payment; for the 6¾% notes, using the 3 3/8% Treasury due Feb. 15, 2008 and 125 bps, including a $30.00 early tender payment; for the 7 1/8% notes, using the 2 5/8% Treasury due March 15, 2009 and 200 bps, including a $30.00 early tender payment; and for the 6.8% notes, using the 4½% Treasury due Feb. 15, 2009 and 200 bps, including a $30.00 early tender payment.
Pricing will be fixed at 2 p.m. ET on March 13.
Those who tender their holdings by the early tender deadline at 5 p.m. ET on March 13 will receive the early tender payment.
If the offer is oversubscribed, ArvinMeritor will buy the 6 5/8% notes first, then the 6¾% notes, then the 7 1/8% notes and finally the 6.8% notes.
The Troy, Mich., auto parts maker also said it will pay accrued interest up to but excluding the settlement date, expected to be March 28.
UBS Investment Bank (888 722-9555 or call collect 203 719-4210), J. P. Morgan Securities Inc., Lehman Brothers Inc. and Citigroup Corporate & Investment Banking are the dealer managers. Global Bondholder Services Corp. (866 540-1500 or call collect 212 430-3774) is the information agent and depositary.
ArvinMeritor added it intends to fund the offers with cash on hand, the proceeds from the sale of its Purolator Filters business in North America and external sources, including new issues or new or existing credit facilities.
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