Titan International to redeem 8¾% notes

New York, July 26 - Titan International Inc. (Ca) said it will redeem all $136.75 million of its outstanding 8¾% senior notes due 2007 on Aug. 26.

The Quincy, Ill. manufacturer of metal wheels and related equipment for the automotive and agricultural and construction machinery industries will pay 101.458% of par plus accrued interest.

"We would like to thank all of our bond holders for their support during the past seven years. Although there were times the rating agencies questioned Titan's financial stability, we lived up to our commitment and will repay our bond holders in full at the redemption price as per the note agreement," said Maurice Taylor, Titan's president and chief executive officer, in a news release.

Earlier Monday, Titan said it had secured a new $100 million revolving credit agreement and would likely use a portion of the proceeds to redeem some of the 8¾% notes.

The company said that if did not redeem the notes by February 2007, the 36-month term on the facility would be adjusted to a 30-month term.

The new facility, arranged through agents LaSalle Bank NA and General Electric Capital Corp., replaces the company's former $20 million revolving credit agreement and term loan, both of which were terminated on July 23. The new revolver will be secured by a first priority security interest in certain assets of Titan's domestic subsidiaries.

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