New Issue: Meritor prices $275 million eight-year notes at par to yield 4½%

By Paul A. Harris

Portland, Ore., Nov. 16 – Meritor Inc. priced a $275 million issue of eight-year senior notes (B1/BB-/BB-) at par to yield 4½% in a Monday drive-by, according to market sources.

The yield printed 25 basis points inside of the 4¾% to 5% price talk. Initial talk was in the low 5% area.

BofA Securities Inc. was on the left of a syndicate of banks leading the deal that also included J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., PNC Capital Markets LLC and RBC Capital Markets Corp.

The Troy, Mich.-based auto components manufacturer plans to use the proceeds, together with cash on hand, to redeem $275 million of its outstanding $450 million of 6¼% senior notes due 2024.

Issuer:	Meritor, Inc.
Amount:	$275 million
Maturity:	Dec. 15, 2028
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Mizuho Securities USA Inc., PNC Capital Markets LLC and RBC Capital Markets Corp.
Co-managers:	NatWest Markets Securities Inc., Fifth Third Securities Inc., U.S. Bancorp Investments Inc., Citizens Capital Markets Inc., Huntington Investment Co., Comerica Securities Inc., HSBC Securities (USA) Inc. and MFR Securities Inc.
Coupon:	4½%
Price:	Par
Yield:	4½%
Call protection:	Three years
Trade date:	Nov. 16
Settlement date:	Dec. 1
Ratings:	Moody's: B1
	S&P: BB-
	Fitch: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	4¾% to 5%
Marketing:	Drive-by

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