Titan International closes $172.5M offering

AP News
Posted: Dec 21, 2009 2:47 PM

Titan International Inc., which makes wheels and tires for large off-road vehicles, announced Monday the closing of a $172.5 million senior note offering.

The notes were sold in a private offering to institutional buyers.

The offering was for 5.625 percent convertible senior subordinated notes due 2017. It included an option for to buy an additional $22.5 million in notes to cover over-allotments.

Net proceeds totaled about $166.1 million after expenses. The money will be used for general corporate purposes, including potential acquisitions and repayment of debt, Titan said in a release.

The notes will bear cash interest semiannually at an annual rate of 5.625 percent. The initial base conversion rate will be 93.0016 shares of Titan common stock per $1,000 of notes, equivalent to an initial base conversion price of approximately $10.75 per share of Titan common stock.

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That conversion price represents a premium of 37.5 percent relative to the Dec. 15 closing price of Titan common stock, Titan said.

Shares of Titan International were up 9 cents to $8.10 in afternoon trading.