Titan Machinery ‘confident’ in ability to repay convertibles due 2019

By Devika Patel

Knoxville, Tenn., Nov. 29 – Titan Machinery Inc. did not retire any additional senior convertible notes due 2019 last quarter, but management is “confident” that the company will be able to fully repay the convertibles at maturity.

“The current outstanding balance of our senior convertible notes remains at $46 million,” treasurer and chief financial officer Mark Kalvoda said on the company’s third quarter ended Oct. 31 earnings conference call on Thursday.

“We have retired $104 million, or approximately 70%, of the original $150 million face value of our senior convertible notes with $95 million in cash [since issuance].

“The remaining balance of convertible notes are due on May 1, 2019, and we are confident in our ability to fully satisfy these notes at maturity,” he said.

Adjusted EBITDA was $21 million in the third quarter of fiscal 2019, compared to $16.2 million in the third quarter of last year.

The company had $52,243,000 of cash as of Oct. 31, compared to a cash balance of $53,396,000 as of Jan. 31.

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

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