Titan says 'bye, bye' to $59.6 million in debt
Titan International Inc. announced that on January 19, 2011, it closed its Exchange Agreement for 5.625% Convertible Senior Subordinated Notes due 2017.
As part of the agreement, note holders exchanged $59,616,000 in aggregate principal amount of the convertible notes for 6,617,709 shares of the company’s common stock, plus a payment for the accrued and unpaid interest. (The notes represented approximately 35% of the outstanding principal amount; following the exchange, approximately $112.9 million aggregate principal amount of the convertible notes remain outstanding.)
The offering ran Jan. 7 through Jan. 18, 2011.
“We were contacted by the note holder that they wanted to exchange their Titan convertible notes for stock,” said Maurice Taylor Jr., Titan's chairman and CEO.
“The exchange will reduce Titan’s interest expense by approximately $3.4 million each year. This is a good deal for both parties, and we appreciate the confidence they have in Titan’s future.”
In addition, Titan's total indebtedness will be reduced by approximately $59.6 million.
According to Titan, the shares of common stock to be issued in connection with the Exchange Agreement will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
For more information on Titan and its products, visit www.titan-intl.com.