Navistar International Corp.
Navistar International Corp. said $200 million of senior subordinated convertible notes have been priced to pay a 4.5% interest rate.
The announcement of pricing for the private offering was made by Lisle, Ill.-based Navistar on Oct. 7 with a scheduled Oct. 11 closing date for the sale. Buyers have been granted an option to buy an additional $30 million of the notes that mature in 2018 after paying interest on a semi-annual basis.
Notes may be converted in some circumstances, Navistar said, into cash, company shares or a combination of those conversion options.
The initial conversion rate is 17.233 shares of Navistar stock per $1,000 of notes. That represents the equivalent of $58.40 per share, said Navistar, which can choose the terms of any conversion.