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Goodyear closes $364 million offering in Europe

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Goodyear Tire & Rubber Co. has amended and restated its European revolving credit facility and closed an offering of 250 million euros (approximately $364 million) aggregate principal amount of senior notes due in 2019 by its European subsidiary, Goodyear Dunlop Tires Europe B.V.

Changes to the European credit facility include the extension of the maturity to 2016 and the reduction of available commitments from 505 million euros to 400 million euros. Loans under the amended facility will bear interest at Euribor plus 250 basis points.

(According to www.euribor-rates.eu, "Euribor" is short for Euro Interbank Offered Rate. "The Euribor rates are based on the average interest rates at which a panel of more than 50 European banks borrow funds from one another. There are different maturities, ranging from one week to one year.")

The notes were issued by Goodyear Dunlop at par and will bear interest at an annual rate of 6.75%. The notes are senior unsecured obligations of Goodyear Dunlop and are guaranteed on a senior unsecured basis by Goodyear and its United States and Canadian subsidiaries that guarantee Goodyear’s senior credit facilities.

Goodyear says the net proceeds from the offering of the notes will be used "to repay existing borrowings on the European revolving credit facility and for general corporate purposes."

The notes were offered in a private placement under Rule 144A and Regulation S under the Securities Act of 1933, as amended. The offering and sale of the notes were not registered under the Securities Act, and the notes may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements.

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