Goodyear completes redemption of notes
Goodyear Tire & Rubber Co. has completed the redemption of its outstanding $650 million of senior secured notes due 2011.
"The redemption will result, as previously indicated, in annualized interest expense savings of approximately $75 million to $80 million, of which about $65 million will be realized in 2008," say Goodyear officials.
"Eliminating this high-cost debt is an important step in our debt reduction plan," says Damon Audia, Goodyear's vice president and treasurer.
"Since January 2007, we have removed more than $3 billion in debt from our balance sheet."
The senior secured notes were comprised of $450 million of fixed rate notes, which bore interest at 11.25%, and $200 million of floating rate notes, which bore interest at LIBOR plus 825 basis points.
Audia also has confirmed the company's previously announced intention to repay $100 million in 6 3/8 % notes when they mature on March 17, 2008.