Titan completes notes redemption

On 6 November, Titan International completed the previously announced redemption of the outstanding US$137,681,000 aggregate principal in its ‘7.875% Senior Secured Notes due 2017’. The company redeemed the notes at a price of $1,059.06 for each $1,000 principal amount, or approximately $145.8 million in total, plus approximately $1.1 million of unpaid interest accrued to the redemption date. Titan says it did not incur any early termination penalties in connection with the redemption of the notes beyond the premium reflected in the redemption price, as described above.

The completion of the redemption discharges the Indenture, dated 1 October 2010 (the ‘2017 Senior Secured Notes Indenture’), among Titan, the Guarantors party thereto (the ‘Guarantors’), and U.S. Bank National Association as the Trustee and the Collateral Trustee (collectively, the ‘Trustee’), under which the Senior Secured Notes due 2017 were issued, as supplemented by the First Supplemental Indenture dated 11 March 2013 among Titan, the Guarantors and the Trustee, pursuant to which additional 2017 Senior Secured Notes due 2017 were issued, the Second Supplemental Indenture (the “Second Supplemental Indenture”) dated as of 7 October 2013 among the Company, the Guarantors and the Trustee, and the Discharge Supplemental Indenture (the ‘Discharge Supplemental Indenture’) dated as of 7 October 2013 among the Company, the Guarantors and the Trustee. The 2017 Senior Secured Notes Indenture was filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on 5 October 2010.  The Second Supplemental Indenture and the Discharge Supplemental Indenture were filed as Exhibit 4.3 and Exhibit 4.4, respectively, to the Company’s Current Report on Form 8-K filed on 7 October 2013.

In connection with this transaction, Titan will record expenses of approximately $4 million in the fourth quarter of 2013.  These expenses relate primarily to the redemption premium of $59.06 per $1,000 principal amount of the notes and unamortised deferred financing fees offset by unamortised premium on the notes.