Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today commented on the closing of its previously announced private offering of $150.0 million convertible senior notes due 2019. The notes were offered and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Act").
The net proceeds from the offering were approximately $145.2 million after deducting the initial purchasers' discounts and commissions and estimated expenses payable by Titan Machinery.
Mark Kalvoda, Titan Machinery's Chief Financial Officer, commented, "The convertible notes include specific features such as net share settlement and a call option in order to minimize the dilutive impact of this transaction on our financial results. Due to the inclusion of such features, we will not be adjusting our previously issued guidance range for the full year ending January 31, 2013 of $2.55 to $2.75 per diluted share."
David Meyer, Titan Machinery's Chairman and Chief Executive Officer, stated, "The successful closing of our $150 million convertible senior notes offers us added flexibility within our capital structure, increases our liquidity and provides fixed rate long-term financing that will enable us to fund future opportunities at an attractive rate. Fiscal 2012 was a record year for our company and we are confident that we are well positioned to build upon our positive momentum and generate another year of record revenue and earnings in fiscal 2013."
About Titan Machinery Inc.
Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, is a multi-unit business with mature locations and newly-acquired locations. The Company owns and operates a network of full service agricultural and construction equipment stores in the United States and Europe. The Titan Machinery network consists of 96 North American dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming, Wisconsin, and Colorado, including two outlet stores, as well as 10 European dealerships in Romania and Bulgaria. The Titan Machinery dealerships represent one or more of the CNH Brands (NYSE: CNH), a majority-owned subsidiary of Fiat Industrial (Milan: FI.MI), including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com.
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