Navistar to Sell More Than 10 Million Shares
October 24, 2012
Navistar International Corp. announced a public offering of approximately 10.7 million shares of its common stock, which could net it up to $218 million.
The price is $18.75 per share. Closing of the offering is expected to occur on October 30, 2012, subject to customary closing conditions.
In addition, the company will grant the underwriters a 30-day option to purchase up to approximately 1.6 million shares of common stock.
The company intends to use all net proceeds from the offering for general corporate purposes.
Navistar's share price has lost around half of its value since the beginning of this year.
Earlier this month Navistar added a colleague of activist investor Carl Icahn and a former protege of his to its board in order to head off a proxy war, and last week it named John Pope, chairman of PFI Group LLC, to its board to replace the retiring David Harrison.
J.P. Morgan Securities LLC, Goldman, Sachs & Co., BofA Merrill Lynch and Credit Suisse Securities (USA) LLC are acting as joint book-running managers for the offering.