AKRON (May 17) — Goodyear priced its public offering of 22.7 million shares of common stock at $33 per share, expected to close May 22.
Goodyear also granted underwriters a 30-day option to buy up to 3.4 million additional shares of common stock to cover over-allotments.
Net proceeds are expected to range from $725 million to $834 million, depending on whether underwriters fully exercise their over-allotment option, the firm said.
Goodyear said it intends to use the money to redeem about $175 million in principal amount of its outstanding 8.6 percent senior notes due in 2011 and $140 million of its 9 percent due in 2015.
The rest will be used for general corporate purposes, including investments in the firm´s tire businesses and repayment of debt, the company said.