AKRON (April 20) — Goodyear has refinanced three credit facilities, reducing its interest expenses by $15 million to $20 million a year and extending maturities.
Goodyear last month said it would refinance the facilities of $1.5 billion, $1.2 billion and 505 million euros (about $671.5 million).
The tire maker reduced the interest rate of the $1.5 billion facility by 50 to 75 basis points; the $1.2 billion facility by 100 basis points with another 25 basis points reduced based on Goodyear´s credit ratings; and the 505 million euro facility by 75 basis points.
"This refinancing action reduces our interest expense, creates additional operational flexibility, extends maturities and helps address our efforts to improve Goodyear´s balance sheet," said Richard Kramer, president of North American Tire and chief financial officer.