Titan Tire gets senior lenders' commitment to finance Goodyear farm tire business purchase

By Sara Rosenberg

New York, Feb. 28 - Titan Tire Corp.'s senior lenders have agreed to fund the approximately $100 million acquisition of The Goodyear Tire & Rubber Co.'s North American farm tire business, according to a company news release.

The company also plans to raise $125 million in long-term debt or complete another convertible bond offer in the public market to reduce the committed senior debt, the release said. Merrill Lynch will be responsible for leading these funding efforts.

Closing of the acquisition is subject to government approval and to Titan reaching an agreement with the United Steelworkers of America membership at the Goodyear facility in Freeport, Ill.

The location of headquarters for the combined tire group (either Des Moines, Iowa, or Freeport, Ill.) will be decided by June.

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