Titan International Inc. will offer $75 million aggregate principal amount of its convertible senior subordinated notes due 2017 in a private offering to qualified institutional buyers.
Titan expects to grant initial purchasers of its notes an option to buy up to $11.25 million principal amount of additional notes, solely to cover over-allotments.
"The notes will bear cash interest at a fixed rate, to be payable semi-annually, and will be convertible at the option of the holders into shares of Titan common stock," say Titan officials.
"Titan will then have the right to redeem the notes in whole or in part at a specified redemption price on or after Jan. 20, 2014, if the closing sale prices of its common stock exceeds 130% of the 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. The interest rate, conversion rate and other items of the notes will be determined by negotiations between Titan and the initial purchasers."
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 repayment of debts.
