The Goodyear Tire & Rubber Co. announced it intends to commence an offering of approximately $400 million aggregate principal amount of senior notes, subject to market and other customary conditions.
The notes will be senior unsecured obligations of the company and are expected to mature in June 2015.
Goodyear says it intends to use the net proceeds from this offering for the following:
* to repay the $200 million in 4.9% borrowings due July 5, 2005, under its U.S. first lien revolving credit facility;
* 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.
The notes, when offered, "will be 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," said the company.
Goodyear's stock closed at $14.86 a share on June 17, 2005. That compares to a 52-week high and low of $16.09 and $8.70, respectively.
