Titan International, Inc. Completes Redemption of 6.50% Senior Secured Notes due 2023

Rhea-AI Summary

Titan International, Inc. (NYSE: TWI) has successfully completed the redemption of its $400 million 6.50% Senior Secured Notes due 2023, at a total cost of $413 million, including $11.3 million in accrued interest. The redemption was executed at a price of $1,032.50 per $1,000 principal amount without early termination penalties. However, the company will recognize approximately $15.9 million in expenses in Q2 2021 related to the redemption premium and unamortized fees.

This financial maneuver reflects Titan's ongoing strategy to manage its debt effectively.

Positive

• Successfully redeemed $400 million in Senior Secured Notes, improving financial stability.
• No early termination penalties incurred, indicating effective debt management.

Negative

• Recognizing $15.9 million in expenses for the redemption, potentially impacting profitability in Q2 2021.

QUINCY, Ill., May 7, 2021 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company") today announced the completion of its previously announced redemption of all of its outstanding $400,000,000 aggregate principal amount of the 6.50% Senior Secured Notes due 2023 (the "2023 Notes"). The Company redeemed the notes at a price of $1,032.50 for each $1,000 principal amount of notes redeemed, or $413.0 million in total, plus approximately $11.3 million of unpaid interest accrued to the redemption date. The Company did not incur any early termination penalties in connection with the redemption of the 2023 Notes beyond the premium reflected in the redemption price described above.

In connection with the redemption of the 2023 Notes, Titan will record expenses of approximately $15.9 million in the second quarter of 2021. These expenses relate primarily to the redemption premium of $32.50 per $1,000 principal amount of the Senior Secured Notes due 2023 and unamortized deferred financing fees.

Safe harbor statement:

This press release contains forward-looking statements regarding anticipated expenses from the redemption of the 2023 Notes and the issuance of the 2028 Notes. 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 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 recent debt redemption news?

Titan International has redeemed $400 million of its 6.50% Senior Secured Notes due 2023, totaling $413 million including interest.

What are the financial implications of Titan's debt redemption?

The company will incur approximately $15.9 million in expenses in Q2 2021 related to the redemption.

How much did Titan pay for the redemption of the 2023 Notes?

Titan paid $1,032.50 for each $1,000 principal amount redeemed, totaling $413.0 million.

Was there any early termination penalty for Titan's debt redemption?

No, Titan did not incur any early termination penalties beyond the premium paid.

What does the debt redemption mean for Titan International's financial health?

It reflects Titan's effort to manage its debt effectively, which may improve its financial stability.