Auto-parts supplier Meritor (NYSE: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.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.