Navistar Proposes Amendment to Senior Secured Term Loan Facility

March 19, 2013

Navistar International Corporation is pursuing an amendment to the $1 billion senior secured term loan facility of Navistar Inc.

The term loan amendment is expected to include an interest rate repricing, the extension of the maturity date from July 16, 2014 to Aug. 17, 2017, and amendments to certain covenants to provide the company with additional operating flexibility.

Concurrently with the effectiveness of the term loan amendment, the company intends to issue up to $300 million of unsecured debt and to use the net proceeds to repay a portion of the principal of the term loan.

The proposed amendment of the term loan is subject to lender consent, the company's issuance of unsecured debt and other conditions, and may not occur as described or at all.

The company intends to hold a bank call with lenders on March 20, 2013 to discuss the proposed amendments to the term loan.

Source: Navistar