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Titan doubles size of notes offering

Order Reprints

Titan International Inc. has increased its previous offering of $75 million aggregate principal amount convertible senior subordinated notes due 2017 to $150 million.

The notes will bear cash interest semi-annually at the rate of 5.625%. Upon conversion, Titan will deliver a number of shares of its common stock as described in the offering circular.

The initial base conversion rate for the notes will be 93.0016 shares of Titan common stock per $1,000 principal amount of notes, "equivalent to an initial base conversion price of approximately $10.75 per share of Titan common stock," according to Titan officials.

"If the price of Titan common stock at the time of determination exceeds the base conversion price, the base conversion rate will be increased by an additional number of shares as determined pursuant to a formula described in the offering circular. The base conversion rate will be subject to adjustment in certain events. The initial base conversion price represents a premium of 37.5% relative to today's closing sale price of Titan common stock."

In addition, Titan will have the right to redeem the notes in whole or in part at a specifed redemption price on or after Jan. 20, 2014, "if the closing sale price of its common stock exceeds 130% of the base conversion price then in effect for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day immediately prior to the date of the redemption notice. Notes will be subordinated in right of payment to Titan's existing 8% senior notes due 2012."

Titan plans to use the proceeds from the offering "for general corporate purposes," including financing potential acquisitions and paying down existing debt.

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