AKRON (March 4, 2008) — Goodyear has completed redemption of its outstanding $650 million debt in senior secured notes, which will result in annualized interest expense savings of $75 million to $80 million.
The company expects to realize about $65 million in savings in 2008.
"Eliminating this high-cost debt is an important step in our debt reduction plan," said Damon Audia, vice president and treasurer. "Since January 2007, we have removed more than $3 billion in debt from our balance sheet."
The notes were made up of $450 million in fixed rate notes, with an interest rate of 11.25 percent, and $200 million in floating rate notes, bearing interest at LIBOR (London Interbank Offered Rate) plus 825 basis points. They were due to mature in 2011.