Titan International, Inc. Call for Redemption of its Senior Secured Notes due 2023

Rhea-AI Summary

Titan International (NYSE: TWI) announced the redemption of its 6.50% Senior Secured Notes due 2023, contingent upon the closing of a new secured notes offering. The redemption is scheduled for May 7, 2021, at 103.25% of the principal amount, plus interest. The press release emphasizes that this information is not an offer to purchase or solicit any of the notes. Additionally, it includes forward-looking statements regarding market conditions and operational risks that could impact the company's financial performance.

Positive

• None.

Negative

• Redemption of 2023 Notes is contingent on new secured notes offering, creating uncertainty.
• Potential inability to refinance 2023 Notes on favorable terms due to market conditions.
• Risks related to operational performance and COVID-19 pandemic effects.
• Dependence on continued labor relations and compliance with regulations.
• Exposure to product liability and warranty claims.

QUINCY, Ill., April 7, 2021 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company") Titan announced today that, in accordance with the redemption provisions of the indenture governing its 6.50% Senior Secured Notes due 2023 (the "2023 Notes"), it has called for redemption all of the 2023 Notes.

The call is conditional upon the closing of a new secured notes offering.  The 2023 Notes will be redeemed on May 7, 2021, assuming satisfaction of the conditions set forth above. Pursuant to the indenture, the notes will be redeemed at 103.25% of the principal amount, plus accrued and unpaid interest to, but not including, the redemption date.

This press release is for information purposes only and is not an offer to purchase or a solicitation of an offer to purchase any of the 2023 Notes. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any new secured notes. Any offers of new secured notes will be made only by means of a private offering circular.

Safe harbor statement:
This press release contains forward-looking statements regarding the Company's intention to redeem its 2023 Notes and a new secured notes offering. These forward-looking statements are covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "would," "could," "potential," "may," "will," and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, these assumptions are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond Titan International, Inc.'s control. As a result, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect, and actual results may vary materially from those indicated or anticipated by such statements. The inclusion of such statements should not be regarded as a representation of such plans, estimates or expectations will be achieved. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to, the Company's ability to refinance its 2023 Notes on favorable terms to it or at all due to prevailing market conditions or otherwise; the continued effect of the COVID-19 pandemic on our operations and financial performance; changes in the Company's end-user markets into which the Company sells its products as a result of domestic and world economic or regulatory influences or otherwise; changes in the marketplace, including new products and pricing changes by the Company's competitors; the Company's ability to maintain satisfactory labor relations; unfavorable outcomes of legal proceedings; the Company's ability to comply with current or future regulations applicable to the Company's business and the industry in which it competes or any actions taken or orders issued by regulatory authorities; availability and price of raw materials; levels of operating efficiencies; the effects of the Company's indebtedness and its compliance with the terms thereof; changes in the interest rate environment and their effects on the Company's outstanding indebtedness; unfavorable product liability and warranty claims; actions of domestic and foreign governments, including the imposition of additional tariffs; geopolitical and economic uncertainties relating to the countries in which the Company operates or does business; risks associated with acquisitions, including difficulty in integrating operations and personnel, disruption of ongoing business, and increased expenses; results of investments; the effects of potential processes to explore various strategic transactions, including potential dispositions; fluctuations in currency translations; risks associated with environmental laws and regulations; risks relating to our manufacturing facilities, including that any of our material facilities may become inoperable; risks relating to financial reporting, internal controls, tax accounting, and information systems; and the other risks and factors detailed in the Company's periodic reports filed with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those reports. These forward-looking statements are made only as of the date hereof. The Company cautions that any forward-looking statements included in this press release are subject to a number of risks and uncertainties, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason, except as required by law.

About Titan
Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in Illinois, the Company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. For more information, visit www.titan-intl.com.

 

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SOURCE Titan International, Inc.

FAQ

What is Titan International's plan for its 2023 Senior Secured Notes?

Titan International plans to redeem its 6.50% Senior Secured Notes due 2023 on May 7, 2021, contingent upon a new secured notes offering.

What percentage will Titan redeem its Senior Secured Notes at?

Titan will redeem its 2023 Notes at 103.25% of the principal amount, plus accrued interest.

What conditions must be met for Titan to redeem its 2023 Notes?

The redemption of Titan's 2023 Notes is conditional upon the successful closing of a new secured notes offering.

What risks are associated with Titan International's forward-looking statements?

Titan's forward-looking statements are subject to significant risks, including market conditions, COVID-19 impacts, and regulatory compliance.

When will Titan International redeem its Senior Secured Notes?

Titan International plans to redeem its Senior Secured Notes on May 7, 2021.