MERITOR, INC. (NYSE:MTOR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement

The information set forth in Item 2.03 below is incorporated in this Item 1.01 by reference.

Item 2.03. Creation of a Direct Financial obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On March 22, 2017, a Swedish subsidiary of Meritor, Inc. (“Meritor”), Meritor HVS AB (the “Seller”), entered into a Receivables Purchase Agreement dated as of March 22, 2017 (the “Receivables Purchase Agreement”) with an affiliate of Nordea Bank AB (“Nordea”), as purchaser. The Receivables Purchase Agreement replaces a similar agreement, which was set to expire on March 31, 2017. Under the new Receivables Purchase Agreement, the Seller is able to sell to Nordea up to 155 million euro of eligible receivables outstanding at any time, and from time to time, from AB Volvo and its subsidiaries, during the three-year term of the agreement, which expires on March 22, 2020. The amount of eligible receivables sold may exceed Nordea’s commitment at Nordea’s sole discretion. The purchase price will be the net face amount of such receivables, discounted for the period of time from the date of sale to the anticipated date of payment at a rate equal to 3-month STIBOR (or EURIBOR for receivables denominated in euros) plus an applicable margin per annum, currently 205 basis points, which may vary up to a maximum of 332 basis points depending on certain circumstances from time to time.

The Receivables Purchase Agreement is intended to effect an absolute transfer of the relevant receivables to Nordea, and contains representations warranties and covenants typical for such a transaction.

About MERITOR, INC. (NYSE:MTOR)

Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.

MERITOR, INC. (NYSE:MTOR) Recent Trading Information

MERITOR, INC. (NYSE:MTOR) closed its last trading session 00.00 at 16.64 with 695,299 shares trading hands.