Goodyear Tire & Rubber Co. says JPMorgan and CitiGroup have successfully arranged a new $650 million secured term loan for the company.
"Goodyear is now positioned to move forward with our plan to refinance the loans we put in place last year and to drive the company's turnaround," says Robert Tieken, executive vice president and chief financial officer.
Goodyear says it will use approximately $335 million of the loan to partially repay its existing $583 million U.S. term loan. The rest of the proceeds will be used to repay other indebtedness and "for general corporate purposes."
The company also says that its principal lenders have approved amendments to the its senior secured credit facilities, which will allow transactions that could be secured by a junior lien on certain of the collateral securing Goodyear's other senior secured U.S. credit facilities.
In addition, Goodyear is moving forward with its previously announced plans for a private senior secured notes offering.
