Navistar International Corp (NAV): MHR Fund Management Acquires More Shares

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Mark Rachesky‘s MHR Fund Management recently filed an amended Form 13D on Navistar International Corp (NYSE:NAV), in which its reported acquiring around 39,000 shares of the company, hence raising its stake to 16.26 million common shares, which represent 19.9% of the company’s outstanding stock. According to its latest 13F filing for the end of June, MHR Fund Management previously held 16.23 million shares.

Navistar International is a holding company whose subsidiaries are engaged in various production businesses, such as the production of International brand commercial and military trucks, brand school and commercial buses, and brand diesel engines. The company operates in four divisions: North America Parts, North America Truck, Financial Service, and Global Operations. Recently, Navistar announced a new alliance with Volkswagen truck & bus, which will acquire 16.2 million newly-issued shares and hold a 16.6% stake in Navistar. The shares will be acquired for around $256 million in total ($15.76 per share), and are to be held for a minimum of three years. Volkswagen was also granted the right to have two Directors added to Navistar’s Board.

Year-to-date, Navistar’s stock has gained a hefty 123.87%. For the second quarter of 2016, Navistar International disclosed earnings per share of $0.05 and revenue of $2.2 billion, compared to a loss per share of $0.78 and revenue of $2.7 billion for the comparable quarter of 2015. Earlier this month, Deutsche Bank AG initiated coverage on Navistar’s stock, assigning it a ‘Hold’ rating, while Macquarie downgraded its rating on it to ‘Underperform’ from ‘Neutral’.

Mark Rachesky MHR

Of the 749 hedge funds that we follow which filed 13F’s for the June quarter, 13 were long Navistar International Corp (NYSE:NAV), down by two from the end of March. Some of the bullish investors included Carl Icahn’s Icahn Capital LP, which held $190.23 million in Navistar shares, Mario Gabelli’s GAMCO Investors, which held a position worth around $80.93 million, Philip Rosenstrach’s Pomelo Capital, John Osterweis’ Osterweis Capital Management, Youlia Mitev’s Proxima Capital Management, and Ken Griffin’s Citadel Investment Group.

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Among the investors who dumped Navistar International Corp (NYSE:NAV) during the second quarter were Jim Simons’ Renaissance Technologies, which said goodbye to a position worth $165,000 on March 31, and Glenn Russell Dubin’s Highbridge Capital Management, which sold off both of its options positions during the quarter, which amounted to $620,000 in PUT options and $507,000 in CALL options on March 31.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
MHR INSTITUTIONAL PARTNERS III 14,980,528 0 14,980,528 0 14,980,528 18.4%
MHR INSTITUTIONAL ADVISORS III 14,980,528 0 14,980,528 0 14,980,528 18.4%
MHR FUND MANAGEMENT 16,225,000 0 16,225,000 0 16,225,000 19.9%
MHR HOLDINGS 16,225,000 0 16,225,000 0 16,225,000 19.9%
MARK H. RACHESKY, M.D 16,264,104 0 16,264,104 0 16,264,104 19.9%

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Page 1 of 10 – SEC Filing

Table of Contents







[Rule 13d-101]


TO § 240.13d-1(a) AND AMENDMENTS


Amendment No. 17



International Corporation

(Name of Issuer)




Common Stock, par value $0.10 per share

(Title of Class of Securities)


(CUSIP Number)

Janet Yeung

MHR Fund Management LLC

1345 Avenue of the Americas, 42nd Floor

New York, New York 10105

(212) 262-0005

(Name, Address and Telephone Number of Person Authorized to Receive Notices of Communication)

September 5, 2016

(Date of Event Which Requires Filing of This Statement)



If the filing
person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box. ¨

Note: Schedules filed in paper format shall include a signed original and five copies of the Schedule, including all exhibits. See §240.13d-7 for
other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for
any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of
Section 18 of the Securities Exchange Act of 1934 (the Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

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