AKRON (Nov. 16) — Goodyear intends to offer about $1 billion in three- and five-year senior notes to repay some maturing notes and also fund general expenses, including costs from the ongoing United Steelworkers strike.
Goodyear said the final value of the note offering will be subject to market and other conditions. The notes will be senior unsecured obligations of the tire maker.
Funds from the offering will be used to repay $515 million of existing notes due Dec. 1 and March 1. Remaining cash from the offering will be used for general corporate purposes, the firm said.
The Steelworkers union has been on strike at 16 of Goodyear´s North American plants since Oct. 5. Goodyear officials said the strike initially was costing the company about $30 million to $35 million in lost operating income per week.