By Paul A. Harris
Portland, Ore., April 8 – Titan International, Inc. priced a $400 million issue of seven-year senior secured notes (Caa1/B-) at par to yield 7% on Thursday, according to market sources.
The yield printed 12.5 basis points inside of yield talk in the 7¼% area. Initial guidance was in the mid-to-high 7% area.
The deal played to $2 billion of demand, which included a significant amount of reverse inquiry, and traded well, a bond trader said.
Goldman Sachs & Co. LLC ran the books.
The Quincy, Ill.-based manufacturer of off-highway wheels, tires, assemblies, and undercarriage products plans to use the proceeds to redeem its 6½% senior secured notes due 2023, with any remaining proceeds to be used for general corporate purposes which may include repayment of other existing obligations.
| Issuer: | Titan International, Inc.
|
| Amount: | $400 million
|
| Maturity: | April 30, 2028
|
| Securities: | Senior secured notes
|
| Books: | Goldman Sachs & Co. LLC
|
| Co-manager: | BMO Capital Markets Corp.
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| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 571 bps
|
| Call protection: | Three years
|
| Trade date: | April 8
|
| Settlement date: | April 22
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7¼% area
|
| Marketing: | Roadshow
|
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