LISLE, Ill. — Navistar International Corporation announced that it plans to issue, subject to market conditions, $1,100 million of new senior notes due 2025 in a private offering.
The notes will be senior unsecured obligations of the company and will be guaranteed by its wholly owned subsidiary, Navistar, Inc.
Navistar intends to use the proceeds of the offering, together with the borrowings under its new senior secured term loan, to retire all $1,450 million aggregate principal amount of its existing 8.25% Senior Notes due 2021 and to pay accrued and unpaid interest thereon, repay all of its outstanding obligations under its existing senior secured term loan facility, including accrued and unpaid interest, if any, fund cash to balance sheet to retire at maturity or repurchase a portion of its 4.50% Senior Subordinated Convertible Notes due 2018 and pay the associated prepayment premiums, transaction fees and expenses incurred in connection therewith.
The notes will be offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, and to certain persons outside of the U.S. pursuant to Regulation S under the Securities Act. Neither the notes nor the related guarantees have been registered under the Securities Act or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state securities laws.
This press release is issued for informational purposes pursuant to Rule 135c of the Securities Act, and shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
SOURCE: Navistar press release