QUINCY, Ill. (March 12, 2013) — Titan International Inc. has closed its offering of $325 million aggregate principal amount of its 7.875 percent senior secured notes due 2017.
The notes were 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, Titan said. They were issued under the indenture, dated as of Oct. 1, 2010, pursuant to which the company previously issued $200 million aggregate principal amount of its 7.875 percent senior secured notes due 2017.
According to Titan, the notes form a single series with the existing notes and will vote as one class under the indenture. However, until a time when the notes become freely transferable under the Securities Act of 1933, as amended, they will have a restricted CUSIP (Committee on Uniform Securities Identification Procedures) and will not trade together with the existing notes.
The company 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. Titan also plans to use any remaining net proceeds from the offering of the notes for general corporate purposes, which it said may include financing potential future acquisitions and repayment of other existing obligations.
"The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws," according to Titan, "and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements."
Titan is a holding company that owns subsidiaries supplying wheels, tires, assemblies and undercarriage for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.