Meritor, Inc. (NYSE: MTOR), today announced that it has provided notice of its intent to redeem all $250 million of its outstanding 10-5/8% notes due 2018. The redemption date is March 15, 2014. The notes will be redeemed at a price equal to 105.313% of the principal amount of the notes, plus accrued and unpaid interest to, but not including, the redemption date, to be paid on March 17, 2014.
The redemption and payment of the notes will be made by The Bank of New York Mellon Trust Company, N.A., the trustee of the indenture governing the notes, in accordance with terms specified in the redemption notice and the redemption procedures of the trustee. The company plans to use the proceeds from its $225 million offering of notes completed on Feb. 13, 2014 and cash on hand to fund the redemption.