Navistar tenders for 2.5% convertibles

By Jennifer Chiou

New York, June 27 - Navistar International Corp. announced the start of a cash tender offer for its $190 million of 2.5% senior convertible notes due 2007.

The company said it will pay par plus accrued interest for the securities.

The tender offer expires at midnight ET on July 25.

The Warrenville, Ill., maker of trucks and engines is also soliciting consents to amend the note indenture, waiving any and all existing defaults and events of defaults.

Navistar is seeking consents from a majority of noteholders.

"This will be the final step in our process to replace the old capital structure with the new $1.5 billion three-year unsecured credit facility," said Robert C. Lannert, Navistar vice chairman and chief financial officer, in a news release.

Citigroup (800 558-3745 or call collect 212 723-6106), Credit Suisse (800 820-1653 or call collect 212 325-7596) and Banc of America Securities LLC are the dealer managers.

Global Bondholder Services Corp. is the information agent (866 857-2200 or call collect 212 430-3774).

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