Goodyear Prices Additional $100 Million of 8.25% Senior Notes
Goodyear Tire & Rubber has announced it has priced its offering of an additional US$100 million aggregate principal amount of its 8.25 per cent senior notes due August 15, 2020. The notes will be senior unsecured obligations of the company. The notes will be sold at 100.75 per cent of the principal amount. Goodyear expects the offering to close on August 25, 2010, subject to customary closing conditions.
The offering, together with the company’s previously announced issuance of $900 million of 8.25 per cent senior notes due 2020, increases the total aggregate principal amount of these 8.25 per cent senior notes due 2020 to $1 billion. Goodyear reports that it intends to use the net proceeds from this offering, together with current cash and cash equivalents, to redeem $260 million in principal amount of its outstanding of 9 per cent senior notes due 2015.
A shelf registration statement was filed with the US Securities and Exchange Commission and became automatically effective upon filing on August 10, 2010. The offering of the notes may be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from Deutsche Bank Securities and The Goodyear Tire & Rubber Company.