AKRON (Feb. 23)—Goodyear has completed a new $650 million secured term loan arranged by J.P. Morgan Chase & Co. Inc. and Citigroup Inc.
The tire maker plans to use about $335 million of the loan to partially repay its $583 million U.S. term loan with the remaining proceeds going to repay other indebtedness and for general corporate purposes.
The firm´s primary lenders approved amendments to Goodyear´s senior secured credit facilities allowing the loan, along with future transactions, to be secured by a junior lien on collateral securing the company's other senior secured U.S. credit facilities, Goodyear said.
The deal puts the firm in a position to move ahead with plans to refinance loans it put in place in 2003, according to Robert W. Tieken, executive vice president and chief financial officer.
Goodyear said it is also is proceeding with plans for a private senior secured notes offering.