AKRON (June 29)—Goodyear has increased its convertible notes offering to $300 million from $150 million, a $150 million increase from the aggregate principal amount announced June 28.
The senior secured obligations are due June 15, 2034, and will bear an interest rate of 4 percent, according to the company. The notes are convertible into shares of Goodyear common stock, initially at a rate of 83 shares of common stock per $1,000 principal amount of notes. That converts to a price of about $12 per share. The firm's stock closed at $9.26 on the New York Stock Exchange June 28.
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.