Navistar International Corp. has made school buses in Conway for decades that it would end bus-production operations there soon, affecting up to 477 jobs at the facility. Navistar opened the Tulsa plant in 2000, moving into a former aircraft manufacturing facility. A smaller operation would continue at Conway, making bus parts. School bus orders have fallen because of the economic downturn. As many as 477 jobs could be involved, either through layoffs or dismissals. Layoffs would not start until Jan. 4, 2010.

Navistar International Inc. announced that it is exploring a joint venture with a Chinese vehicle manufacturer to build diesel engines for commercial vehicles in China. The proposed 50-50 joint venture with Anhui Jianghuai Automobile Co. would establish a research and design center in China's Anhui province. Diesel engines produced under the joint venture would be used primarily in China as well as certain export markets. Navistar says the joint venture would be governed by an eight-person board consisting of four members from each company. The venture still requires approval by each company's board of directors, as well as other approvals before it moves forward.

Navistar International Corp. announced that it plans to issue, subject to market conditions, $1 billion of senior notes due 2021 and $500 million of senior subordinated convertible notes due 2014. The net proceeds will be used to repay in full amounts outstanding under its $1.1 billion term loan and $400 million synthetic revolver senior unsecured credit facilities, which expire in January 2012, as well as other general corporate purposes. In connection with the convertible notes offering, Navistar will grant the underwriters an over-allotment option to purchase an additional $75 million of convertible notes. The senior notes offering is being led by Credit Suisse, and the convertible notes offering is being led by J.P. Morgan. These notes will be offered and sold under the company's shelf registration statement filed with the Securities and Exchange Commission on Oct. 20, 2009, which was effective upon filing. A copy of the prospectus can be obtained for the senior notes by contacting Credit Suisse at Attention: Prospectus Department, One Madison Avenue, New York, NY 10171 (1-800-221-1037) and for the convertible notes by contacting J.P.Morgan at Attention: Prospectus Department, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245 (1-718-242-8002).