QUINCY, Ill., Jan. 17, 2017 /PRNewswire/ -- Titan
International, Inc. (NYSE: TWI) today announced the conversion of
97.1% of the principal balance of its 5.625% convertible senior
subordinated notes ("Notes"), which matured on January 15, 2017. Prior to maturity, $60,161,000 in aggregate principal amount of the
Notes was outstanding, of which, holders of $58,460,000 in aggregate principal amount of the
Notes, or 97.1%, converted their Notes into shares of Titan common
stock pursuant to the terms of the indenture governing the Notes.
After giving effect to the conversion and maturity of the Notes,
Titan's $400,000,000 senior secured
notes due in 2020 are its only U.S. senior notes outstanding. The
$58,460,000 principal amount of
converted Notes was converted into 5,462,264 shares of Titan common
stock, representing approximately 10% of Titan's outstanding
common stock prior to conversion. Each $1,000 principal amount of the Notes was
convertible into 93.436 shares of Titan common stock. The remaining
$1,701,000 principal amount of the
Notes not converted was paid in cash.
The initial base conversion rate for the Notes was 93.0016
shares of Titan common stock per $1,000 principal amount of the Notes, equivalent
to an initial base conversion price of approximately $10.75 per share of Titan common stock. The base
conversion rate was increased by 0.4344 shares as determined
pursuant to a formula described within the indenture governing the
Notes.
"We believe this is a win-win for Titan and our new
shareholders," stated Paul Reitz,
Titan President and CEO. "We're pleased these convertible debt
holders have chosen to become shareholders of Titan. We believe
that the debt reduction and minimal cash outlay will further
strengthen our capital position moving forward."
Company description: Titan International, Inc. (NYSE:
TWI), a holding company, owns subsidiaries that supply wheels,
tires, assemblies and undercarriage products for off-highway
equipment used in agricultural, earthmoving/construction and
consumer applications. For more information, visit
www.titan-intl.com.
Safe harbor statement:
This press release contains forward-looking statements, which
statements are covered by the "Safe Harbor for Forward-Looking
Statements" provided by the Private Securities Litigation Reform
Act of 1995. The words "believe," "expect," "anticipate," "plan,"
"would," "could," "outlook," "potential," "may," "will" and other
similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, these
assumptions are subject to significant risks and uncertainties, and
are subject to change based on various factors, some of which are
beyond Titan International, Inc.'s control. As a result, any
of these assumptions could prove to be inaccurate and the
forward-looking statements based on these assumptions could be
incorrect. The matters discussed in these forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results and trends to differ materially
from those made, projected, or implied in or by the forward-looking
statements depending on a variety of uncertainties or other factors
including, but not limited to risks detailed in Titan
International, Inc.'s periodic reports filed with the Securities
and Exchange Commission, including the annual report on Form 10-K
for the year ended December 31, 2015.
These forward-looking statements are made only as of the date
hereof. The Company cautions that any forward-looking
statements included in this press release are subject to several
risks and uncertainties and the Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, changed circumstances or future
events or for any other reason.
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SOURCE Titan International, Inc.