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Meritor Automotive Completes $500 Million Public Bond Offering

24 February 1999

Meritor Automotive Completes $500 Million Public Bond Offering

    TROY, Mich., Feb. 24 --  Meritor Automotive, Inc.
has completed its first public offering of debt securities consisting of $500
million 10-year fixed-rate 6.8% notes due February 15, 2009.  The Notes were
offered to the public at 99.553% of their principal amount.
    The offering was underwritten by a syndicate of financial institutions led
by Morgan Stanley & Co., Inc.  Strong interest in the offering demonstrates
the bond investors' confidence in the company's credit risk.
    The company will use the proceeds for general corporate purposes including
repaying existing floating-rate bank indebtedness, a portion of which was
incurred to fund three recent acquisitions.
    Meritor, with 1998 sales of more than $3.8 billion, is a global supplier
of a broad range of components and systems for commercial, specialty and light
vehicle OEMs and the aftermarket.  Meritor consists of two businesses:  Heavy
Vehicle Systems, a leading supplier of drivetrain systems and components for
medium- and heavy-duty trucks, trailers and off-highway equipment and
specialty vehicles, including military, bus and coach, and fire and rescue;
and Light Vehicle Systems, a major supplier of roof, door, access control,
suspension and seat adjusting systems, and wheels for passenger cars, light
trucks and sport utility vehicles.