Meritor Announces Conversion Option for 7.875% Convertible Senior Notes

Holders are entitled to convert all or a portion of their Notes at any time beginning April 1, 2019 

Meritor announced that it is notifying holders of its 7.875% Convertible Senior Notes due 2026 (the “Notes”) that they are entitled to convert all or a portion of their Notes at any time beginning April 1, 2019 and prior to the close of business on June 28, 2019 at a rate of 83.3333 shares of common stock per $1,000 principal amount at maturity of the Notes (representing a conversion price of approximately $12.00 per share). The Notes are convertible because the closing price of shares of the company’s common stock for at least 20 trading days during the 30 consecutive trading-day period ending on March 29, 2019 was greater than 120% of the conversion price in effect on March 29, 2019.

The Notes surrendered for conversion will be settled in cash up to the principal amount at maturity of the Notes and cash, stock or a combination of cash and stock, at the company’s election, for the remainder of the conversion value of the Notes in excess of the principal amount at maturity and cash in lieu of any fractional shares, subject to and in accordance with the provisions of the indenture. The notice of conversion containing information required by the indenture governing the conversion of the Notes was sent to registered holders of the Notes today. Copies of the notice of conversion and additional information relating to the procedure for conversion of the Notes may be obtained from The Bank of New York Mellon Trust Company, N.A., as Trustee and Conversion Agent for the Notes

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