The Goodyear Tire & Rubber Co. has priced its offering of $400 million aggregate principal amount of senior notes (see June 20 item, "Goodyear announces proposed offering of senior notes").
The notes will be senior unsecured obligations of the company, will mature on July 1, 2015, and will bear interest at a rate of 9% per year.
The notes are being 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 says it intends to use the net proceeds from this offering 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 may then use the $190 million in cash to repay other debt obligations and for general corporate purposes.
