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Goodyear announces conversion period for convertible notes

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The Goodyear Tire & Rubber Co. says its 4% convertible senior notes due June 15, 2034, are now convertible at the option of the holders and will remain convertible through September 30, 2005, the last day of the current fiscal quarter.

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 July 18, 2005 (the 11th trading day of the current fiscal quarter) was greater than 120% of the conversion price in effect on such day.

The company will deliver shares of its common stock upon conversion of any notes surrendered prior to September 30, 2005. Cash will be paid in lieu of fractional shares only.

Issued in June 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. There is currently $350 million in aggregate principal amount of notes outstanding.

If all outstanding notes are surrendered for conversion, the aggregate number of shares of common stock issued would be approximately 29 million. The notes could be convertible after September 30, 2005 if the sale price condition is met in any future fiscal quarter or if any of the other conditions to conversion set forth in the indenture governing the notes are met.

Goodyear's stock closed at $16.36 a share on July 19. That compares to a 52-week high and low of $16.46 and $9.15, respectively.

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