COMMENT: MWM is an attractive target…for Chinese OEMs targeting Brazil

Navistar’s announcement of a US$370m convertible debt offering – priced at 4.75% and due 2019 – answers a number of questions as the company continues its restructuring programme. In October this year, Navistar has US$570m of previously issued convertible debt that falls due. On the basis that this issue is successful, paying these down will place less pressure on the company’s cash reserves, and so the vexed question of near term liquidity – perhaps the key metric for gauging the success or otherwise of the restructuring efforts – becomes slightly less pertinent.