By Rebecca Melvin
New York, Dec. 15 - Titan International Inc. priced an upsized $150 million of seven-year convertible senior subordinated notes after the close of markets Tuesday to yield 5.625% with an initial conversion premium of 37.5%, according to a syndicate source.
Originally the deal was expected to be $75 million in size.
The Rule 144A deal priced at the midpoint of talk, which was 5.375% to 5.875% for the coupon with a 35% to 40% premium.
The base conversion price is $10.75. If the stock price at the time of conversion exceeds this level, the base conversion rate of 93.0016 will be increased according to a formula.
The deal was brought by Goldman Sachs & Co. as bookrunner, with co-managers KeyBank, Oppenheimer & Co. and Sterne Agee Group Inc.
The notes will be non-callable until Jan. 20, 2014 and then provisionally callable if Titan's stock price is 130% of the conversion price for 20 or more trading days in a 30-day trading period.
There are no investor puts.
The notes will be subordinate to Titan's existing 8% senior notes due 2012.
Proceeds are earmarked for general corporate purposes, including financing potential acquisitions and repayment of existing debt.
Titan International is a Quincy, Ill.-based maker of wheels, tires and assemblies for off-highway vehicles, including tractors and combines.
| Issuer: | Titan International Inc.
|
| Issue: | Convertible secured subordinated notes
|
| Amount: | $150 million, upsized from $75 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | 2017 (Seven years)
|
| Bookrunner: | Goldman Sachs & Co.
|
| Co-managers: | KeyBank, Oppenheimer and Sterne Agee
|
| Coupon: | 5.625%
|
| Price: | Par
|
| Yield: | 5.625%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $10.75 base conversion price, plus additional shares set by a formula
|
| Conversion ratio: | 93.0016
|
| Call: | Jan. 20, 2014 onwards, subject to hurdle of 130% of base conversion price
|
| Pricing date: | Dec. 15
|
| Distribution: | Rule 144A
|
| Price talk: | 5.375%-5.875% yield, up 35%-40%
|
| Stock listing: | NYSE: TWI
|
| Stock reference: | $7.82
|
| Market capitalization: | $275.73 million
|
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