Navistar to Issue $1.5 Billion Debt Offering

Truck maker Navistar International Corp. on Tuesday said it plans to issue $1.5 billion in new debt that it will use to repay an outstanding loan.

The company will issue $1 billion of senior notes due 2021 and $500 million of senior subordinated convertible notes due 2014.

The company is also offering the underwriters an overallotment option to purchase an additional $75 million in convertible notes.

Proceeds will go to pay down its $1.1 billion term loan and its $400 million synthetic revolver senior unsecured credit facilities, which expire in January 2012.

Credit Suisse and JPMorgan are leading the debt offerings.

Shares of Navistar fell $1.74, or 4.4 percent, to $37.95 in after-hours trading.

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