Goodyear will repay $300 million loan
Goodyear Tire & Rubber Co. will repay its $300 million third lien term loan tomorrow, Aug. 16, which will result in annualized interest expense savings of $26 million.
Goodyear officials say $10 million of that total will be realized in 2007. (The secured loan matures in 2011.)
Goodyear's debt replayment plan also includes early repayment (in the first quarter of 2008) of $650 million in secured notes, due 2011.
Goodyear Chairman, CEO and President Bob Keegan says these early repayments, "coupled with the company's $315 million redemption of senior notes in June, will save Goodyear more than $125 million in annual interest expense."