Navistar International Corporation
) announced its intention to offer $300 million of 8.25% worth of
senior notes scheduled to mature in 2021, depending on market
These senior notes will be issued as additional notes under the
previous issue of $1 billion of 8.25% senior notes due in 2021.
Thus, it will contain the same terms as the existing senior
notes. Out of $1 billion senior notes, $900 million is
Recently, Navistar announced the amendment of its $1 billion
senior secured term loan facility. Under the amendment, maturity
date was extended from Jul 16, 2014 to Aug 17, 2017 and it is
expected to include an interest rate repricing.
The proceeds from the issuance of senior notes will be used to
repay a portion of the senior secured term loan facility. This is
with respect to the amendment of the facility. J.P. Morgan
Securities LLC, Credit Suisse Securities (USA) LLC, BofA Merrill
Lynch and Goldman, Sachs & Co. will act as the joint
book-running managers for the offering.
Navistar recorded narrower loss of $114.0 million or $1.42 per
share in the first quarter of fiscal 2013 ended Jan 31, 2013
compared with $144.0 million or $2.06 per share in the year-ago
quarter. The loss per share was also better than the Zacks
Consensus Estimate of a loss of $1.63 per share.
Revenues declined 12.4% year over year to $2.6 billion in the
quarter, missing the Zacks Consensus Estimate of $2.8 billion.
The year-over-year decline in revenues was due to sluggish
industry demand and lower market share of the company due to its
transition to clean engine systems as per EPA regulation.
Warrenville, Ill-based Navistar International manufactures and
sells commercial trucks, mid-range diesel engines, buses,
military vehicles and chassis for motor homes and step-vans.
Navistar also provides service parts for various trucks and
Currently, Navistar retains a Zacks Rank #3 (Hold) on its stock.
Meanwhile, some other stocks that are performing well in the
industry where Navistar operates include
). All these companies carry a Zacks Rank #1 (Strong Buy).
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