Goodyear secures $650 million loan

March 15, 2004

Goodyear has successfully completed a private offering of $650 million of senior secured notes.

Here's what the Akron, Ohio-based tiremaker said regarding the development in an official statement released earlier today:

"The proceeds of the notes were used to repay the remaining amount outstanding under the company's U.S. term loan facility, to reduce its

$750 million U.S. revolving credit facility to $680 million and for general

corporate purposes.

"The notes, due 2011, consist of $450 million of 11 percent senior secured notes and $200 million of senior secured floating rate notes, which pay a variable interest rate of eight percentage points over six month LIBOR.

"The notes are secured by junior liens on certain of the collateral securing the

company's senior secured U.S. credit facilities.

"'This financing, along with our recently completed $650 million term loan, have enabled us to meet our goal of refinancing the U.S. Term Loan before April of this year and avoids the milestone fee that would have been

payable under our restructured credit facilities put in place last April,' said

Robert W. Tieken, executive vice president and chief financial officer."