AKRON (Nov. 17) — Goodyear has priced its offering of $1 billion of three- and five-year senior notes-an offering the tire maker announced Nov. 16 that drew sharp criticism from the striking United Steelworkers.
Goodyear said the notes will be senior unsecured obligations of the company. The $500 million of three-year notes will be sold at 99 percent of the principal amount and will bear interest of the six-month London Interbank Offered Rate plus 375 basis points. The $500 million of five-year notes will be sold at par and will bear an interest rate of 8 5/8 percent.
The Akron-based tire maker said it will use $515 million of the proceeds to repay other notes coming due Dec. 1 and March 1. The remaining funds will be used for general corporate uses, including costs associated with the strike at 16 North American plants.
The union, however, criticized the plan, saying the company is adding more debt to sustain a "fight they can never win."
The two sides have been in formal talks since Nov. 14 in Cincinnati.