The Goodyear Tire & Rubber Company today announced that it has priced its offering of an additional $200 million aggregate principal amount of its 9.500% senior notes due May 31, 2025.
The notes will be senior unsecured obligations of the company. The notes will be offered to the public at a price of 101.75% of their principal amount, plus accrued and unpaid interest from May 18, 2020.
Goodyear expects the offering to close on May 22, 2020, subject to customary closing conditions.
The offering, together with the company’s previously completed issuance of $600 million of 9.500% senior notes due 2025, increases the total aggregate principal amount of these 9.500% senior notes due 2025 to $800 million.
The company’s intentions
Goodyear intends to use the net proceeds from this offering, together with the net proceeds of the previously completed issuance of $600 million of 9.500% senior notes due 2025, for general corporate purposes, which may include repaying or redeeming the company’s outstanding 8.75% Notes due 2020 (the “2020 Notes”) at or prior to their maturity of August 15, 2020.
Currently, there is approximately $282 million in aggregate principal amount of the 2020 Notes outstanding.
Pending the use of proceeds as described above, a portion of the net proceeds from this offering may be temporarily applied to repay outstanding balances under the company’s revolving credit facilities.
The offering was made under an effective shelf registration statement that was filed with the U.S. Securities and Exchange Commission and became automatically effective on May 13, 2020.
