QUINCY, Ill. (Nov. 12, 2013) — Titan International Inc., on Nov. 6, completed the previously announced redemption of all of its outstanding $137.7 million aggregate principal amount of the 7.875- percent senior secured notes due 2017.
The Quincy-based company redeemed the notes at a price of $1,059.06 for each $1,000 principal amount of notes redeemed, or approximately $145.8 million in total, plus approximately $1.1 million of unpaid interest accrued to the redemption date. Titan said it did not incur any early termination penalties in connection with the redemption of the notes beyond the premium reflected in the redemption price.
The completion of the redemption discharges the indenture, dated Oct. 1, 2010, among Titan, the guarantors party to the deal, and U.S. Bank National Association as the trustee and the collateral trustee under which the senior secured notes were issued. as supplemented by the first supplemental indenture on March 11 of this year.
The redemption also included a second supplemental indenture on Oct. 7 and a discharge supplemental indenture also on that date among the company, the guarantors and trustee.
Titan said the 2017 senior secured notes indenture was filed as Exhibit 4.1 to the company's current report on Form 8-K, filed Oct. 5, 2010. The second supplemental indenture and the discharge supplemental indenture were filed as Exhibit 4.3 and Exhibit 4.4, respectively, to the company's current report on Form 8-K filed Oct. 7, 2013.
In connection with this transaction, Titan said it will record expenses of approximately $4 million in the fourth quarter of 2013 relating primarily to the redemption premium of $59.06 per $1,000 principal amount of the notes and unamortized deferred financing fees offset by unamortized premium on the notes.
Titan International is a holding company that owns subsidiaries supplying wheels, tires, assemblies and undercarriage product for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.