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NAVISTAR COMPLETES STOCK OFFERING, PRE-FUNDS RETIREE HEALTH TRUST; PAYMENT OF DIVIDEND ARREARAGE ON SERIES G PREFERRED STOCK APPROVED

 CHICAGO, Oct. 21 /PRNewswire/ -- Navistar International Corp. (NYSE: NAV) today announced successful completion of its public offering of 23.6 million shares of common stock from which the company realized gross proceeds of approximately $516 million. Navistar will use partial proceeds of this offering immediately to pre-fund $300 million of its retiree benefit liability. This pre-funding will reduce annual expense for retiree healthcare by approximately $25 million. As previously announced, the company was required to pre-fund, prior to Dec. 30, 1993, at least $100 million of this liability.
 The company has elected to accelerate its pre-funding in order to provide additional security to retirees for the future of their benefits as well as provide cost savings and increased financial flexibility for Navistar by lowering the company's unfunded liability.
 Subsequently, the board of directors of Navistar International Corp. today voted to approve payment of all quarterly dividends in arrears equal to $6 per share on Navistar's $6 cumulative convertible preferred stock, Series G. This payment represents all dividends that were previously suspended for the most recent four quarters and are to be paid on Dec. 15, 1993, to all shareowners of record as of Dec. 5.
 -0- 10/21/93
 /EDITORS NOTE: The 23.6 million shares issued includes an underwriters' over-allotment of 1.6 million that was exercised on Oct. 15./
 /CONTACT: Maril MacDonald of Navistar International, 312-836-3240/
 (NAV)


CO: Navistar International Corp. ST: Illinois IN: AUT SU: OFR

TW -- NY098 -- 5389 10/21/93 15:38 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
Words:248
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