The following is a press release from Navistar:
Navistar International Corporation (NYSE: NAV) today announced that it plans to issue, subject to market conditions, $200 million of senior subordinated convertible notes due 2018. In addition, the company will grant the initial purchasers an option to purchase up to an additional $30 million of convertible notes.
The company currently intends to use the net proceeds from the offering, together with $270 million of intercompany borrowings from its financing subsidiary, for general corporate purposes, which may include funding capital expenditures and repurchases of a portion of its outstanding 3.00% senior subordinated convertible notes due 2014 in open market and privately negotiated transactions at prices and in amounts based on market conditions.
The convertible notes and the shares of the company's common stock issuable upon conversion of the notes, if any, have not been, and will not be, registered under the United States Securities Act of 1933, as amended ("Securities Act") or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The company only plans to offer the convertible notes to qualified institutional buyers pursuant to Rule 144A under the Securities Act.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these 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. Any offer of the convertible notes will be made only by means of a private offering memorandum.