QUINCY, Ill. (Dec. 16, 2009)—Titan International Inc. is doubling the size of its previously announced offering of $75 million aggregate principal amount convertible senior subordinated notes, due 2017, to $150 million.
Titan granted the initial purchasers of its notes an option to purchase up to $22.5 million principal amount of additional notes, solely to cover over-allotments.
Upon conversion, Titan will deliver a number of shares of its common stock. The initial base conversion rate for the notes will be 93.0016 shares of Titan common stock per $1,000 principal amount of notes, equivalent to an initial base conversion price of approximately $10.75 per share of Titan common stock. If the stock price exceeds the base conversion price, the rate will be increased by an additional number of shares.
The initial base conversion price represents a premium of 37.5 percent relative to the current closing sale price of Titan common stock.
The Quincy-based tire and wheel maker said it plans to use the proceeds from the offering for general corporate purposes, including financing potential future acquisitions and repayment of existing debt obligations.