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Goodyear makes a quick $484 million

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Goodyear Tire & Rubber Co. has closed its previously announced public offering of mandatory convertible preferred stock. The offering was made on March 28, 2011 (see "Own a piece of Goodyear").

In connection with the closing, the underwriters already exercised in full their 30-day option to purchase an additional 1.3 million shares of the mandatory convertible preferred stock. With the exercise of the underwriters’ option, 10 million shares of the mandatory convertible preferred stock were issued in the closing at a price of $50 per share.

Including the exercise of the underwriters’ option, the net proceeds from the offering, after deducting underwriting discounts and commissions and offering expenses, totaled approximately $484 million.

Goodyear intends to use the net proceeds from the offering:

* to redeem $350 million in principal amount of its outstanding 10.500% senior notes due May 15, 2016 at the redemption price of 110.500% of the principal amount plus accrued and unpaid interest to the redemption date;

* for "general corporate purposes," which may include the repayment of other outstanding indebtedness.

Goodyear suffered a net loss of $216 million on net sales of $18.8 billion in 2010. For more information about Goodyear and its products, visit www.goodyear.com.

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