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Goodyear closes $1 billion senior notes offering

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Goodyear Tire & Rubber Co. has closed its offering of $1 billion aggregate principal amount of three-year and five-year senior notes. The notes are senior unsecured obligations.

The $500 million of three-year notes were sold at 99% of the principal amount and will bear interest at the six-month London Interbank Offered Rate, or LIBOR, plus 375 basis points, according to Goodyear officials.

"The $500 million of five-year notes were sold at par and will bear interest at a rate of 8 5/8%."

Goodyear intends to use the net proceeds from this offering to repay at maturity $515 million principal amount of its existing notes due Dec. 1, 2006, and March 1, 2007.

The company will use the remaining cash for general corporate purposes, which may include addressing the continuing strike by the United Steelworkers union.

The notes were offered in a private placement under Rule 144A. They have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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