Navistar Announces Redemption Notice of Senior Notes

WARRENVILLE, IL--September 30, 2011: On September 28, 2011, Navistar International Corporation issued a redemption notice to holders of its 8.25% Senior Notes due November 1, 2021 (Senior Notes). Navistar intends to redeem $50 million of its Senior Notes on November 1, 2011 at a price of 103 and to redeem an additional $50 million of the same Senior Notes at a price of 103 on November 2, 2011. The company intends to borrow under its Asset Based Revolving Line of Credit to finance the redemption of the Senior Notes.

“This redemption will further reduce our borrowing costs, which is a key part of our long-term plan to improve earnings without impacting our liquidity position”

"This redemption will further reduce our borrowing costs, which is a key part of our long-term plan to improve earnings without impacting our liquidity position," said A.J. Cederoth, Navistar executive vice president and chief financial officer.

About Navistar

Navistar International Corporation is a holding company whose subsidiaries and affiliates produce International^® brand commercial and military trucks, MaxxForce^® brand diesel engines, IC Bus brand school and commercial buses, Monaco^® RV brands of recreational vehicles, and Workhorse^® brand chassis for motor homes and step vans. The company also provides truck and diesel engine service parts. Another affiliate offers financing services.