Revised Goodyear offering worth $900 million
Goodyear Tire & Rubber Co. has priced its offering of $900 million aggregate principal amount of 8.25% senior notes due Aug. 15, 2020. The notes will be senior unsecured obligations of the company and sold at 99.163% of the principal amount.
Goodyear expects the offering to close on Friday, Aug. 13, 2010, subject to customary closing conditions.
The offering was increased from a previously announced offering size of $750 million (see "Latest Goodyear offering worth $750 million" for more details).
Goodyear says it intends to use the net proceeds from this offering, together with its current cash and cash equivalents and unused availability under its credit facilities, to redeem the following:
1. $325 million in principal amount of 8.625% senior notes due 2011; and
2. approximately $388 million in principal amount of 7.857% notes due 2011.
"Goodyear intends to use any remaining net proceeds for general corporate purposes, which may include the repayment of other outstanding indebtedness."