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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2000
NAVISTAR INTERNATIONAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-9618 36-3359573
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(State or other jurisdiction of (Commission File No.) (I.R.S. Employer
incorporation or organization) Identification No.)
455 North Cityfront Plaza Drive, Chicago, Illinois 60611
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 836-2000
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ITEM 5. OTHER EVENTS
In August 2000, Navistar Financial Corporation (NFC) securitized the retail
accounts that arise out of sales of trucks on open account by International
Truck and Engine Corporation (International). On a regular basis International
transfers the receivables to NFC, which in turn transfers the receivables to
Truck Retail Accounts Corporation (TRAC), a wholly-owned, special purpose entity
of NFC. TRAC, in turn, sells an undivided interest in the retail accounts to a
bank conduit. This transaction is structured on a revolving basis and provides
for up to $100 million of funding. TRAC retains an interest in the retail
accounts, which is subordinated to the bank conduit's investment as protection
against losses, dilution and carrying costs.
On October 16, 2000 Truck Retail Instalment Paper Corp., a wholly-owned,
special purpose entity of NFC, terminated the previously existing $400 million
Asset-Backed Commercial Paper facility and issued $475 million of a senior class
and $25 million of a subordinated class of floating rate asset-backed notes. The
proceeds were used to establish a revolving retail warehouse facility for NFC's
retail notes and retail leases, other than fair market value leases.
On November 1, 2000 NFC issued $764.7 million in asset backed securities
through Navistar Financial Retail Receivables Corporation, a wholly-owned,
special purpose entity of NFC. The gain on this sale will be approximately $4.5
million. The proceeds, net of underwriting fees and credit enhancements, were
used by NFC for general working capital purposes and to make payments on various
intercompany obligations.
NFC is in the process of securitizing all of its unsecured trade
receivables generated by the sale of diesel engines and engine service parts
from International to Ford, which securitization is expected to raise
approximately $100 million.
In November 2000 NFC has also signed a term sheet to enter into a new
senior credit agreement with certain of its existing lenders and new lenders.
The terms of the new senior credit agreement are still being finalized. Based
upon discussion held to date, the new credit agreement is anticipated to provide
for aggregate borrowings of at least $700 million and will mature in November
2005. Under the new credit agreement, Navistar International's three Mexican
finance subsidiaries will be permitted to borrow up to $100 million in the
aggregate, which will be guaranteed by NFC.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NAVISTAR INTERNATIONAL CORPORATION
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Registrant
Date: November 3, 2000 /s/ Mark T. Schwetschenau
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Mark T. Schwetschenau
Vice President and Controller
(Principal Accounting Officer)