QUINCY, Ill.—Titan International Inc. has privately negotiated an exchange agreement on its convertible senior notes.
The Quincy-based company said it was approached by a note holder of Titan's 5.625 percent Convertible Senior Subordinated Notes due 2017 with an offer to exchange the note holder's convertible notes for the company's common stock. The two parties privately negotiated an agreement to exchange approximately $52.7 million in aggregate principal amount of the convertible notes for approximately 4.9 million shares of the company's common stock plus a cash payment totaling $14.2 million for the premium on the principal and unpaid interest to maturity.
Titan said its total indebtedness will be reduced by approximately $52.7 million and annual interest payments will be reduced by about $3.2 million. Following the exchange, approximately $60.2 million aggregate principal amount of the convertible notes will remain outstanding.
The shares of common stock issued in the exchange transaction will be unrestricted securities upon issuance.