The Goodyear Tire & Rubber Co. has closed its offering of $400 million aggregate principal amount senior notes.
The notes are senior unsecured obligations of the company. They will mature on July 1, 2015, and will bear interest at a rate of 9% per year.
Goodyear says it intends to use the net proceeds from this offering for the following:
* to repay the $200 million in 4.9% borrowings under its U.S. first lien revolving credit facility, and
* to replace $190 million of the cash it used to pay $516 million principal amount of its 6.375% Euro Notes due 2005 at maturity on June 6, 2005. The company says it may then use the $190 million in cash to repay other debt obligations and for general corporate purposes.
The notes were offered in a private placement under Rule 144A, have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Goodyear's stock closed at $14.40 a share on Thursday, June 23. That compares to a 52-week high and low of $16.09 and $8.70, respectively.
