Goodyear Tire & Rubber Co. has closed its offering of $350 million aggregate principal amount of 4% convertible senior notes due June 15, 2034.
The notes are convertible into shares of Goodyear's common stock at an initial conversion rate of 83.07 shares of common stock per $1,000 principal amount of notes, which is equal to an initial conversion price of $12.04 per share, say Goodyear officials.
The Akron, Ohio-based tiremaker plans to use the net proceeds from the offering for "general corporate purposes" that may include temporary repayment of one of its revolving credit facilities.
The convertible securities were offered in private placement under Rule 144A.
