Meritor Announces Redemption of 4.625% Convertible Senior Notes Due 2026

Mar 11, 2016, 16:30 ET from Meritor, Inc.

TROY, Mich., March 11, 2016 /PRNewswire/ -- 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.

About Meritor, Inc.

Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. With more than a 100-year legacy of providing innovative products that offer superior performance, efficiency and reliability, the company serves commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world. Meritor is based in Troy, Mich., United States, and is made up of approximately 8,400 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 18 countries. Meritor's common stock is traded on the New York Stock Exchange under the ticker symbol MTOR. For important information, visit the company's website at meritor.com.

Forward-Looking Statement

This release contains statements relating to future results of the company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "estimate," "should," "are likely to be," "will" and similar expressions. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to reliance on major original equipment manufacturer ("OEM") customers and possible negative outcomes from contract negotiations with our major customers, including failure to negotiate acceptable terms in contract renewal negotiations and our ability to obtain new customers; the outcome of actual and potential product liability, warranty and recall claims; our ability to successfully manage rapidly changing volumes in the commercial truck markets and work with our customers to manage demand expectations in view of rapid changes in production levels; global economic and market cycles and conditions; availability and sharply rising costs of raw materials, including steel, and our ability to manage or recover such costs; our ability to manage possible adverse effects on our European operations, or financing arrangements related thereto, in the event one or more countries exit the European monetary union; risks inherent in operating abroad (including foreign currency exchange rates, implications of foreign regulations relating to pensions and potential disruption of production and supply due to terrorist attacks or acts of aggression); rising costs of pension and other postemployment benefits; the ability to achieve the expected benefits of restructuring actions; the demand for commercial and specialty vehicles for which we supply products; whether our liquidity will be affected by declining vehicle productions in the future; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; labor relations of our company, our suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of our suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of our debt; our ability to continue to comply with covenants in our financing agreements; our ability to access capital markets; credit ratings of our debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; possible changes in accounting rules; and other substantial costs, risks and uncertainties, including but not limited to those detailed herein and from time to time in other filings of the company with the SEC. See also the following portions of our Annual Report on Form 10-K for the fiscal year ended September 30, 2015, as amended: Item 1.Business, "Customers; Sales and Marketing"; "Competition"; "Raw Materials and Supplies"; "Employees"; "Environmental Matters"; "International Operations"; and "Seasonality; Cyclicality"; Item 1A.Risk Factors; Item 3.Legal Proceedings; and Item 7.Management's Discussion and Analysis of Financial Condition and Results of Operations. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

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SOURCE Meritor, Inc.



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