QUINCY, Ill.—Titan International Inc. has priced its previously announced offering of its 7.875 percent Senior Secured Notes due 2017.
The notes are being offered by the initial purchasers only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the U.S. in compliance with Regulation S, Quincy-based Titan said. The size of the offering was increased from the previously announced $275 million aggregate principal amount to $325 million aggregate principal amount. The issue price is 106.250 percent of the principal amount of the notes.
The notes will be issued under the indenture dated Oct. 1, 2010, pursuant to which the company issued $200 million aggregate principal amount of its 7.875 percent Senior Secured Notes due in 2017.
Titan said it intends to use the net proceeds from the offering to repay a portion of the existing indebtedness of certain of its indirect subsidiaries under the European credit facilities assumed as part of its acquisition of Titan Europe Plc. in the fourth quarter of 2012. The company also plans to use any remaining net proceeds from the offering of the notes for general corporate purposes, which may include financing potential future acquisitions and repayment of other existing obligations.