AKRON (June 28)—Goodyear plans to make an offering of about $150 million in convertible notes as another step in its refinancing process.
The offering will be used to reduce corporate obligations, including temporary repayment of the firm's revolving credit facilities, and is consistent with its agreement with the United Steelworkers of America, a spokesman said.
The process on the offering will begin immediately, he said, adding that the firm will set a price after the market closes June 28 and close the offering later this week.
The tire maker said it expects to grant initial purchasers a 30-day option to buy up to an additional $50 million of convertible notes on top of the $150 million offering.
The securities will be offered in a private placement, have not been registered under the Securities Act of 1933 and can't be resold in the U.S. until they are registered, the company said in a prepared statement.