Goodyear asks for -- and receives -- more credit
Goodyear Tire & Rubber Co. has completed a refinancing of its principal United States credit facilities.
Significant changes to the amended and restated agreements include the following:
* The company's existing $1.5 billion asset-based revolving credit facility was increased to $2 billion and its maturity was extended to 2017. Loans under this facility will initially bear interest at LIBOR plus 150 basis points.
* The company's existing $1.2 billion second lien term loan was extended to 2019. The loan will bear interest at LIBOR plus 375 basis points, subject to a LIBOR floor of 100 basis points. The amended and restated second lien term loan was issued with an original issue discount of 200 basis points.
"These financing actions position the company to continue to implement its Strategy Roadmap," says Darren Wells, executive vice president and chief financial officer. "We see this refinancing as a proactive step to improve our financial position, leaving us with no term debt repayments required until 2019."