Titan International Inc. intends to offer $100 million principal amount of five-year unsecured notes that will be convertible into shares of Titan's common stock.
Titan plans to use proceeds, along with borrowings under a new $100 million revolving credit facility, to repay "all of the amounts outstanding under the existing term loan and to redeem all of the outstanding principal amount of its 8 3/4% senior subordinated notes due 2007," according to Titan officials.
Interest rates, conversion prices and offering prices will be determined via negotiations between Titan and the notes' initial buyers.
Titan may sell up to an extra $15 million principal amount of notes upon the exercise of an option granted to initial purchasers in connection with the offering.
