Titan Machinery launches $115 million seven-year convertibles at 3.625% to 4.125%, up 30%-35%

By Rebecca Melvin

New York, April 18 - Titan Machinery Inc. launched an offering of $115 million of seven-year convertible senior notes that are talked to yield 3.625% to 4.125% with an initial conversion premium of 30% to 35%. Pricing is expected after the market close Wednesday, according to market sources.

The Rule 144A offering has an expected $17.25 million greenshoe and was being sold via joint bookrunners Bank of America Merrill Lynch and Wells Fargo Securities LLC.

Proceeds are expected to be used for working capital and general corporate purposes, which could include repaying portions of its floor plan financing facilities and the acquisition or investment in companies or assets that complement Titan's business.

The notes are non-callable for three years and then are provisionally callable if Titan's common stock is at least 120% of conversion for 20 out of 30 consecutive trading days.

The notes have a change-of-control make-whole provision and dividend protection via a conversion ratio adjustment. They also have net share settlement.

Fargo, N.D.-based Titan owns and operates a network of agricultural and construction equipment stores in the United States.

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