Meritor, Inc. (NYSE: MTOR) today announced that it has issued a notice of redemption for all of its outstanding $121,000 aggregate accreted principal amount of 4.625% convertible senior notes due 2026 (the “Notes”). The redemption date is April 15, 2016 (“Redemption Date”) and the redemption price will be equal to 100% of the accreted principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any (including additional interest, if any), thereon up to but excluding the Redemption Date.
From and after the Redemption Date, the Notes will no longer be outstanding and interest will cease to accrue unless Meritor defaults in making the redemption payment.
As a result of the issuance of the notice of redemption, the Notes are convertible at any time prior to the close of business on April 15, 2016 at a rate of 47.667 shares of common stock per $1,000 original principal amount of the Notes (which is equivalent to a conversion price of approximately $20.98 per share). The Notes surrendered for conversion will be settled in cash up to the accreted principal amount of the Notes surrendered for conversion and cash, stock or a combination of cash and stock, at Meritor’s election, for the remainder of the conversion obligation, if any, in excess of the accreted principal amount, in accordance with the provisions of the indenture.
The notice of redemption containing information required by the indenture governing the redemption and conversion of the Notes was sent to registered holders of the Notes today. Copies of the notice of redemption and additional information relating to the procedure for redemption and/or conversion of the Notes may be obtained from The Bank of New York Mellon Trust Company, N.A., as Trustee and Conversion Agent for the Notes, at:
Corporate Trust – Reorg
111 Sanders Creek Parkway
East Syracuse, NY 13057
Tel: (315) 414-3349
In accordance with the instructions specified in the notice of redemption, the Notes are to be surrendered to The Bank of New York Mellon Trust Company, N.A., in exchange for payment of the redemption price. Payment of the redemption price is expected to be made on April 15, 2016.
This announcement does not constitute an offer to buy or sell or the solicitation of an offer to sell or buy securities in any jurisdiction.
