The Goodyear Tire & Rubber Co. has closed $3.65 billion in new credit facilities.
These include:
* A $1.5 billion asset-based revolving credit facility due in 2010, with an interest rate of 1.75% over LIBOR, which can increase to between 2% and 2.25% over LIBOR if available undrawn amounts are below $400 million (LIBOR is an abbreviation for the "London Interbank Offered Rate." LIBOR is the interest rate offered by a group of London banks for U.S. dollar deposits of a stated maturity.)
* A $1.2 billion second-lien term loan due in 2010, win an interest rate of 2.75% over LIBOR;
* A $300 million third-lien secured term loan facility due in 2011, with an interest rate of 3.5% over LIBOR; and
* The euro equivalent of an approximately $650 million credit facility for the company's Goodyear Dunlop Tires Europe affiliate consisting of a $450 million revolving credit facility due in 2010, with an interest rate of 2.75% over LIBOR, and a $200 million term loan due in 2010, with an interest rate of 2.375% over LIBOR.
The new credit facilities replace:
* a $1.3 billion asset-based credit facility, due in 2006, with an interest rate of 4% over LIBOR;
* A $650 million asset-based term loan, due in 2006, with an interest rate of 4.5% over LIBOR;
* A $680 million deposit funded credit facility, due in 2007, with an interest rate of 4.5% over LIBOR; and
* $650 million in credit facilities for Goodyear Dunlop Tires Europe, due April 30, 2005, with an interest rate of 4% over LIBOR.
"Extending our debt maturities is a key component of the company's capital structure improvement plan," said Richard Kramer, executive vice president and chief financial officer. "This refinancing addresses the majority of our maturities through 2009 and provides cost-effective financing."
