Titan gets early tenders for 73.78% of 7 7/8% notes, to call remaining

By Toni Weeks

San Luis Obispo, Calif., Oct. 7 - Titan International, Inc. received tenders for $387,319,000, or about 73.78%, of its $525 million of 7 7/8% senior secured notes due 2017 by the 5 p.m. ET on Oct. 4 consent deadline, according to a company news release.

Holders will be paid the total consideration of $1,064.50 per $1,000 principal amount of notes plus accrued interest, which includes a $50.00 consent payment for each note tendered by the consent deadline. Settlement for these notes is expected Oct. 7.

The tender offer will expire at midnight ET on Oct. 21.

Titan also announced it has called for redemption any notes not tendered by the expiration date. The redemption is scheduled for Nov. 6.

Concurrent with the tender offering, Titan solicited consents to proposed amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants, some affirmative covenants and some events of default and would also release the collateral securing the notes.

According to the press release, the consents received were sufficient to effect the proposed amendments to the indenture.

Holders who tendered their notes were deemed to have consented to the proposed amendments and to the release of the collateral. Holders could not deliver their consents without tendering their notes, and consents could not be revoked.

The tender offer and consent solicitation are subject to the completion by Titan of at least $400 million of new financings. The company priced $400 million of seven-year notes at par to yield 6 7/8% on Sept. 26, as reported by Prospect News.

By tendering their notes, holders waived any and all defaults resulting from the consummation of the new financings.

The dealer manager and solicitation agent is Goldman Sachs & Co. (800 828-3182 or 212 902-6941). The information agent and depositary is Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 470-4300 for noteholders).

Titan International is a holding company based in Quincy, Ill. Its subsidiaries supply wheels, tires, assemblies and undercarriage for off-highway equipment used in agricultural, earthmoving/construction and consumer applications.

© 2015 Prospect News.
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