Goodyear Tire & Rubber Co. has announced that holders of outstanding 4% convertible senior notes due June 15, 2034, tendered $346 million aggregate principal amount in return for 28.7 million shares of common stock, plus a total cash payment of $23 million.
"Approximately 99% of the principal amount of the outstanding convertible notes was tendered in the exchange offer," say Goodyear officials.
A total of $4 million principal amount of convertible notes remains outstanding.
"This successful exchange offer eliminates approximately $346 million in debt from our balance sheet and reduces our annual interest expense by approximately $14 million," notes W. Mark Schmitz, Goodyear's executive vice president and chief financial officer.
"This exchange is another step in our debt reduction process and helps us move closer to our next stage metrics."
The exchange offer -- which expired at 5 p.m. EDT on Dec. 5 -- allowed note holders to receive the same number of shares of Goodyear's common stock as they would have received upon conversion of the convertible notes in accordance with their current terms, plus a cash payment, including accrued and unpaid interest.
