Navistar to Float Convertible Notes Issue

Navistar International (NYSE: NAV  ) is tapping the markets in an attempt to raise some capital. The company announced today it will float a $200 million issue of senior subordinated convertible notes that mature in 2018. These will be distributed to "qualified institutional buyers," according to a company press release. Navistar said will also grant the initial buyers a 30-day option to purchase up to $30 million worth of the notes. 

Navistar will combine the net proceeds from the offering with $270 million in loans from a subsidiary, using the total for "general corporate purposes." These may include capital expenditures and the repurchase of some of outstanding 3% convertible notes that mature next year.

Navistar has nearly 80.5 million shares outstanding, and its stock currently trades at $37.64 per share.

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