QUINCY, Ill. (Dec. 14, 2009)—Titan International Inc. plans to offer $75 million aggregate principal amount of its convertible senior subordinated notes due 2017 in a private offering to qualified institutional buyers.
Titan said it will the proceeds from the offering for general corporate purposes, including financing potential acquisitions and repayment of existing debt obligations.
The tire and wheel maker said it expects to grant the initial purchasers 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 semiannually, and will be convertible at the option of the holders into shares of Titan common stock. The interest rate, conversion rate and other terms of the notes will be determined by negotiations between Titan and the initial purchasers, the Quincy-based firm said.