AKRON (May 21, 2008) — Goodyear has called for the redemption by June 20 of all its outstanding 4-percent convertible senior notes due in 2034.
The conversion to stock and cash will allow the tire maker to eliminate about $3.96 million in debt on its second-quarter balance sheet.
During the fourth quarter of 2007, Goodyear offered to exchange the notes, issued in July 2004, for cash payment and shares of common stock. About 99 percent of the outstanding notes were redeemed at that time, allowing the Akron-based company to eliminate about $346 million in debt.
The remaining outstanding notes will be converted at 83.07 shares of common stock per $1,000 principal amount of notes, which Goodyear said is equal to a conversion price of $12.04 per share vs. the prevailing market value of about $28.