Goodyear Tire & Rubber Co. says its 4% convertible senior notes due June 15, 2034, are now convertible and will remain so through March 31, 2008.
Notes are convertible "at the option of shareholders," according to Goodyear officials.
"The notes became convertible because the last reported sale price of the company's common stock for at least 20 trading days during the 30 consecutive trading-day period ending on January 16, 2008 (the 11th trading day of the current fiscal quarter), was greater than 120% of the conversion price in effect on such day."
Goodyear says it will deliver shares of its common stock or pay cash upon conversion of any notes surrendered on or prior to March 31. If shares are delivered, cash will be paid in lieu of fractional shares only.
Issued in July 2004, the notes are currently convertible at a rate of 83.0703 shares of common stock per $1,000 principal amount of notes, which is equal to a conversion price of $12.04 per share.
During the fourth quarter of 2007, Goodyear completed an exchange offer for outstanding notes for a cash payment and shares of common stock. As a result, less than $4 million in aggregate principal amount of notes remain outstanding.
"If all outstanding notes are surrendered for conversion, the aggregate number of shares of common stock issued would be approximately 0.3 million."
