Auto-parts supplier Meritor (MTOR) announced yesterday that it's offering $250 million worth of senior unsecured notes in a bid to swap out higher-rate debt for notes that carry a lower rate while extending the terms of maturity.
The new notes have an interest rate of 6.75% and will be due in 2021, replacing its 8.125% notes that are due in 2015. Meritor previously announced that it was initiating a tender offer for the older notes, saying it would pay investors who tendered their notes early $30 plus $1,110 in consideration.
The joint book-running managers of the new offering are Citigroup, J.P. Morgan, Bank of America's Merrill Lynch, RBS, and UBS's investment bank.
