QUINCY, Ill. (July 20)—Tire and wheel maker Titan International Inc. has sold 5.25 percent convertible senior unsecured notes due 2009 in an offering for $100 million principal amount.
The placement of the notes is expected to close on or about July 26. The initial purchasers have an option to purchase up to an additional $15 million principal amount of the notes. The net proceeds from this offering will be applied to the outstanding principal amount of the company's 8.75-percent senior subordinated notes due 2007.
The notes are convertible at any time into shares of Titan International's common stock at an initial conversion rate of 74.0741 shares per $1,000 principal amount of notes. This represents a conversion price of $13.50 per common share, or a conversion premium of 36.8 percent over the July 19 closing price of $9.87. The notes bear interest at 5.25 percent per annum payable semiannually.
"The company is very excited about the institutional investors' extremely positive reception of the notes and the anticipation regarding Titan's growth potential," stated Maurice Taylor Jr., Titan president and CEO. "This transaction will benefit our existing stockholders by enhancing Titan's financial position."