Autoliv to Issue $400 Million of Notes

NEW YORK (AP) -- Swedish auto safety systems maker Autoliv Inc. said Friday its U.S. operating arm plans to offer $400 million of guaranteed senior notes maturing between 2012 and 2019.

The increase from the original issue size of $200 million was driven by strong demand following road shows across the U.S. and in London, Autoliv said.

Autoliv ASP Inc. will offer $110 million in five-year notes at 5.56 percent interest; $90 million in seven-year notes at 5.81 percent interest; $35 million in seven-year notes at LIBOR plus 0.81 percent; $105 million in 10-year notes at LIBOR plus 0.94 percent; and $60 million in 12-year notes at LIBOR plus 0.97 percent. LIBOR, or London Interbank Offered Rate, is a widely used international benchmark of interest rates.

Proceeds will be used to repay existing debt and for other general corporate purposes, the company said.

Autoliv shares fell $1.46 to $62.04 in afternoon trading.