Meritor Announces Redemption of $275,000,000 of the Outstanding $450,000,000 Aggregate Principal Amount of its 6-1/4% Notes due 2024
Meritor, Inc. (NYSE: MTOR) announced the redemption of $275 million of its outstanding $450 million 6-1/4% notes due 2024. The redemption is scheduled for December 16, 2020, with a redemption price equal to 102.083% of the principal amount, plus any accrued interest. After this date, the redeemed notes will cease to accrue interest unless there is a payment default. The notice of redemption was sent to registered holders, and details regarding the procedure can be obtained from The Bank of New York Mellon Trust Company, N.A.
- Redemption of $275 million of 6-1/4% notes indicates streamlined debt management.
- Redemption price of 102.083% reflects financial stability.
- None.
TROY, Mich., Nov. 17, 2020 /PRNewswire/ -- Meritor, Inc. (NYSE: MTOR) today announced that it has issued a notice of redemption for
From and after the Redemption Date, the redeemed Notes will no longer be outstanding, and interest will cease to accrue thereon unless Meritor defaults in making the redemption payment.
The notice of redemption, containing information required by the indenture governing the redemption 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 of the Notes may be obtained from The Bank of New York Mellon Trust Company, N.A., as Trustee for the Notes, at:
The Bank of New York Mellon
Global Corporate Trust
111 Sanders Creek Parkway
East Syracuse, NY 13057
Attn: Redemption Unit
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 Dec. 16, 2020.
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
Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. With more than a 110-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 more than 7,000 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 19 countries. Meritor common stock is traded on the New York Stock Exchange under the ticker symbol MTOR.
Forward-Looking Statement
This release contains forward-looking statements relating to the redemption of the Notes and the company's intended use of proceeds of the notes. Such statements 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," "anticipated," "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 the duration and severity of the COVID-19 pandemic and its effects on public health, the global economy, financial markets and operations; our 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 markets or our European operations, or financing arrangements related thereto following the United Kingdom's decision to exit the European Union or in the event one or more other countries exit the European monetary union; risks inherent in operating abroad (including foreign currency exchange rates, restrictive government actions regarding trade, implications of foreign regulations relating to pensions and potential disruption of production and supply due to terrorist attacks or acts of aggression); risks related to our joint ventures; rising costs of pension benefits; the ability to achieve the expected benefits of strategic initiatives and restructuring actions; our ability to successfully integrate the products and technologies of Fabco Holdings, Inc., AA Gear Mfg., Inc., AxleTech and Transportation Power, Inc. and future results of such acquisitions, including their generation of revenue and their being accretive; 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 and launch 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 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 proceedings or related liabilities with respect to environmental, asbestos-related, or other matters; possible changes in accounting rules; and other substantial costs, risks and uncertainties, including but not limited to those detailed under the heading entitled "Risk Factors" in Part I, Item 1A of the company's Annual Report on Form 10-K for the year ended September 30, 2020 and from time to time in other filings of the company with the SEC. The forward-looking statements in this release speak only as of the date hereof, and the company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Meritor, Inc.
FAQ
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