The Goodyear Tire & Rubber Co. says it intends "to commence an offering of approximately $150 million aggregate principal amount of convertible notes, subject to
market and other customary conditions."
Initial purchasers will be granted a 30-day option to purchase up to an additional $50 million aggregate principal amount of notes.
The net proceeds from the offering will be used for "general corporate purposes," according to the company. By Goodyear's definition, that may include the temporary repayment of one of the company's revolving credit facilities.
Goodyear posted a first-quarter net loss of $76.9 million on record sales of $4.3 billion for the first quarter ended March 31, 2004. That compares to a net loss of $196.5 million on sales of $3.5 billion for the first quarter in 2003.
Goodyear's stock price closed at $9.85 on Friday, June 25. That compares to a 52-week high and low of $11.97 and $4.49, respectively.
