ArvinMeritor greenshoe exercised, raising convertibles to $200 million

New York, Feb. 23 - ArvinMeritor Inc. said the underwriters of its recent sale of 20-year convertible senior unsecured notes exercised the $25 million over-allotment option in full, raising the size of the deal to $200 million.

The Troy, Mich.-based auto components maker originally priced $175 million of the securities on Feb. 6 after the close, selling them with a coupon of 4% and an initial conversion premium of 37.5%.

JP Morgan was the bookrunner of the Rule 144A offering.

Proceeds will be used to fully repay the company's $169.5 million term loan due 2012.

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