Meritor (NYSE:MTOR) has launched a cash tender offer for its 8.125% notes maturing in 2015. The company is offering $1,140 in total for each $1,000 in principal value of the notes, plus accrued and unpaid interest.
The auto parts supplier is offering $30 for the early tender of the notes as well as $1,110 as tender consideration. The offer is subject to certain conditions, including Meritor's receipt of proceeds from a debt financing transaction sufficient to purchase and pay for all the accrued interest on the notes that are tendered and accepted for purchase.
This offer expires at 12:01 a.m. New York City time on June 5.
All told, the issue has an aggregate principal amount of $251 million. Only those noteholders who tender their notes before 5:00 p.m. on May 17 New York City time will receive the early tender premium.
Citigroup's eponymous Global Markets unit is the dealer manager and solicitation agent in the tender.