TROY, Mich. -- ArvinMeritor has increased the price it will pay for its 8-¾ percent notes due 2012 that are tendered pursuant to its previously announced tender offer for up to $175 million aggregate principal amount of ArvinMeritor's 8-¾ percent notes due 2012.

The total consideration for each $1,000 principal amount of notes tendered pursuant to the offer has been increased to $1,097.50. Holders of notes that are validly tendered and not validly withdrawn at or before 5 p.m. (New York City time) on the Early Tender Date of March 8 will receive the total consideration for their notes that are accepted for purchase in the offer.  

The tender offer consideration for each $1,000 principal amount of notes tendered pursuant to the offer has been increased to $1,067.50. Holders of notes that are validly tendered after 5 p.m. (New York City time) on the early tender date and at or before 11:59 p.m. (New York City time) on the expiration date of March 22 will receive the tender offer consideration for their notes that are accepted for purchase in the offer. The tender offer consideration consists of the total consideration minus the early tender payment (which remains $30 for each $1,000 principal amount of notes).  

Holders who tender notes at or before 5 p.m. (New York City time) on March 8 can withdraw tenders at or before 5 p.m. New York City time on March 8, but not thereafter. Holders who tender notes after 5 p.m. (New York City time) on March 8 cannot withdraw their tenders.

In addition to any consideration received, holders who tender notes that are accepted for payment in the offer will be paid any accrued and unpaid interest calculated up to but not including the settlement date. The settlement date is expected to be March 23, which is one day after the expiration date or promptly thereafter.

The expiration date and the early tender date have not been extended and all of the other terms and conditions of the offer remain in effect as described in the offer to purchase dated Feb. 23.

BofA Merrill Lynch, J.P. Morgan, Citi and RBS are the dealer managers for the offer.