Goodyear announces waiver extension, new financing commitment
Goodyear Tire & Rubber Co. today announced it has been granted an extension until April 4, 2003, to comply with certain covenants in its syndicated loan agreements.
The waivers had previously been set to expire March 7, but were extended as the company, with the support of JPMorgan, works to restructure, refinance and extend certain loan agreements into 2005. Under the waivers, Goodyear remains entitled to access its revolving credit facilities.
As part of the process -- to provide additional liquidity and funds to repay certain existing facilities -- Goodyear has secured a commitment from JPMorgan and Citigroup to underwrite a new, three-year, $1.3 billion asset-based credit facility that would take effect with the successful completion of the amendments. This commitment is subject to certain customary
"We are pleased with these developments as we continue to make progress with our banks, with whom we have had strong, long-standing relationships," said Robert W. Tieken, Goodyear executive vice president and chief financial
officer. "The new asset-based facility, which extends into 2006, provides additional liquidity that offers financial and operational flexibility for our businesses."