By Paul A. Harris
Portland, Ore., March 6 - Titan International, Inc. priced an upsized $325 million add-on to its 7 7/8% senior secured notes due Oct. 1, 2017 (B1/B+/) at 106.25 on Wednesday, according to a market source.
The reoffer price came on top of the price talk, and it rendered a 5.899% yield to worst.
Goldman Sachs & Co. was the lead left bookrunner. Jefferies & Co. was the joint bookrunner.
Proceeds will be used to repay a portion of the debt of some indirect subsidiaries under the European credit facilities assumed as part of the acquisition of Titan Europe plc in the fourth quarter of 2012 and for general corporate purposes. The additional proceeds, resulting from the upsizing, will be used to put cash on the balance sheet.
Titan International is a Quincy, Ill.-based manufacturer of wheels and tires for off-road equipment.
| Issuer: | Titan International, Inc.
|
| Amount: | $325 million, increased from $275 million
|
| Proceeds: | $345.3 million
|
| Maturity: | Oct. 1, 2017
|
| Security description: | Add-on to 7 7/8% senior secured notes due Oct. 1, 2017
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunner: | Jefferies & Co.
|
| Co-manager: | William Blair & Co.
|
| Coupon: | 7 7/8%
|
| Price: | 106.25
|
| Yield to worst: | 5.899%
|
| Spread: | 539 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2013, then callable at 105.906
|
| Trade date: | March 6
|
| Settlement date: | March 11
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 106.25 area
|
| Marketing: | Roadshow
|
| Original issue: | $200 million priced at par in September 2010
|
| Total issue size: | $525 million
|
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