Goodyear Common Stock Offering Closes

Goodyear has announced the closing of its public offering of 26,136,363 common stock shares, including the fully exercised over-allotment option, at $33.00 per share. Taking into account the exercise of the over-allotment option the offering’s net proceeds, after subtracting underwriting discounts and commissions, totalled approximately US$834 million.

According to a company statement Goodyear intends to use the net proceeds from the offering to redeem approximately $175 million in principal amount of its outstanding 8.625 per cent senior notes due in 2011 and approximately $140 million in principal amount of its outstanding 9.00 per cent senior notes due in 2015. The company expects to use the remaining net proceeds for what it calls ‘general corporate purposes’, which may include, among other things, investments to stimulate growth within the company’s core tyre business and the repayment of additional debt.

Deutsche Bank Securities, Citi and Goldman, Sachs & Co. served as the offering’s joint book-running managers.