Goodyear repays $315 million in notes as planned
Goodyear Tire & Rubber Co. has completed its previously announced redemption of $315 million in senior notes. (See "Goodyear prices common stock offering," May 17, 2007.)
Following its successful equity offering in May, Goodyear has exercised its rights to redeem $175 million of its $500 million in 8.625% senior notes due in 2011, and $140 million of its $400 million in 9.00% senior notes due in 2015.
"Using proceeds from our equity offering to reduce debt brings us closer to the completion of our Capital Structure Improvement Plan," says Damon Audia, Goodyear's vice president and treasurer.
The company has said it expects to use the remaining proceeds of the
equity offering, as well as proceeds from the pending sale of its
Engineered Products business, "for general corporate purposes." That may include reducing debt, addressing legacy obligations and/or supporting growth in its core tire businesses.