Back to top

Analyst Blog

Navistar International Corporation (NAV - Analyst Report) announced its intention to offer $300 million of 8.25% worth of senior notes scheduled to mature in 2021, depending on market conditions.

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 outstanding.

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 trailers.

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 Gentherm Incorporated (THRM - Snapshot Report), Visteon Corp. (VC - Snapshot Report) and Denso Corp. (DNZOY). All these companies carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%