QUINCY, Ill. (Jan. 19, 2017) — Nearly all of the holders of Titan International Inc. convertible senior subordinated notes that matured Jan. 15 converted their notes to Titan common stock, according to Titan.
Holders of $58.5 million worth of the 5.625-percent notes — issued in 2009 — converted the notes to shares of Titan International a 97.1-percent rate.
The conversion represents 5.46 million shares of Titan common stock, representing approximately 10 percent of Titan's outstanding common stock prior to conversion, the Quincy-based tire and wheel maker said. Each $1,000 principal amount of the notes was convertible into 93.436 shares of Titan common stock; the remaining $1.7 million principal amount of the notes not converted was paid in cash.
Titan President and CEO Paul Reitz termed the action a "win-win for Titan and our new shareholders.
"We're pleased these convertible debt holders have chosen to become shareholders of Titan," he said. "We believe that the debt reduction and minimal cash outlay will further strengthen our capital position moving forward."
With this conversion complete, Titan's remaining senior notes outstanding total $400 million, due in 2020.