A strong energy modulation in an electron bunch passing through a dielectric-lined waveguide was recently demonstrated in Antipov et al., Phys. Rev. Lett. 108, 144801 (2012). In this Letter, we demonstrate a successful conversion of this energy modulation into a beam density modulation, and the formation of a series of microbunches with a subpicosecond periodicity by means of magnetic optics (chicane). A strong coherent transition radiation signal produced by the microbunches is obtained and the tunability of its carrier frequency in the 0.68-0.9 THz range by regulating the energy chirp in the incoming electron bunch is demonstrated using infrared interferometry. A tabletop, compact, tunable, and narrowband source of intense THz radiation based on this technology is proposed.