AKRON (Nov. 21) — Goodyear has closed its offering of $1 billion aggregate principal amount of three-year and five-year senior notes, the company announced Nov. 21. The notes are senior unsecured obligations of the company.
The $500 million of three-year notes were sold at 99 percent of the principal amount and will bear interest at the six-month London Interbank Offered Rate plus 375 basis points. The $500 million of five-year notes were sold at par and will bear interest at a rate of 8 5/8 percent.
The company first announced the offering Nov. 16.
Goodyear intends to use the net proceeds from the offering to repay at maturity $515 million principal amount of its existing notes due Dec. 1 and March 1. The company will use the remaining cash for general corporate purposes, which may include addressing the continuing strike by the United Steelworkers union.