TROY, Mich. -- ArvinMeritor has priced an underwritten public offering of 17.35 million shares of common stock, par value $1 per share, at a price of $10.50 per share. The size of the offering was increased from the previously announced 15 million shares.

In connection with this offering, ArvinMeritor has granted the underwriters an over-allotment option to purchase up to 2.6 million additional shares of its common stock. The offering is expected to close on March 3, subject to customary closing conditions.

ArvinMeritor intends to use the net proceeds from the offering to repay amounts outstanding under its revolving secured credit facility and its U.S. accounts receivable securitization program and for general corporate purposes.

J.P. Morgan Securities Inc., Citi and UBS Investment Bank are acting as joint book-running managers for the offering.