QUINCY, Ill. (July 28)—Tire and wheel maker Titan International Inc. has secured a new $100 million revolving credit agreement with agents LaSalle Bank National Association and General Electric Capital Corp., the company announced July 26.
The new facility replaces Titan's former $20 million revolving credit agreement and term loan, both of which were terminated July 23.
The $100 million credit facility has a 36-month term and will allow the firm to redeem certain of Titan's 8.75-percent senior subordinated notes, the Quincy-based company said. Later on July 26, Titan announced it had notified its trustee to redeem all of Titan's outstanding 8.75-percent senior subordinated notes due 2007.
The redemption date for those notes will be Aug. 26, for the total $136.8 million of notes outstanding at a redemption price of 101.458 percent per note inclusive of the redemption premium, Titan said. Note holders will receive their accrued and unpaid interest due on the notes on the redemption date.
Titan made one more financial announcement July 26: it confirmed it has completed the previously announced sale of $100 million of 5.25-percent convertible senior unsecured notes due 2009 in a Rule 144A offering. The closing also included the exercise in full by the initial purchasers of their option to purchase an additional $15 million of the notes, the company said.
The net proceeds from this offering will be applied to the outstanding principal amount of Titan's 8.75-percent senior subordinated notes due 2007.