Goodyear calls outstanding notes for redemption
Goodyear Tire & Rubber Co. has called all of its outstanding senior notes due in 2011 and 2015 for redemption on Sept. 29, 2010.
Goodyear will use the net proceeds from its recent $1 billion issue of 8.25% senior notes due 2010 to fund these redemptions.
The notes called for redemption are $388 million in principal amount of 7.857% senior notes due Aug. 15, 2011; $325 million in principal amount of 8.625% senior notes due Dec. 1, 2011; and $260 million in principal amount of 9% senior notes due July 1, 2015.
"The contractual redemption price for the 7.857% notes is the sum of the present values of the remaining scheduled payments on the notes, discounted to the redemption date using a defined treasury rate plus 35 basis points and will be determined as of the third business day prior to the redemption date, say Goodyear officials.