AKRON (Feb. 2, 2010)—Goodyear has initiated an offer to exchange any and all of its $650 million in aggregate principal amount of 7.857 percent notes due in 2011 for a new series of 8.75 percent notes due in 2020.
Goodyear is soliciting consents from the holders of the old notes to amend the terms of the indenture that governs the old notes. The proposed amendments, if adopted, would delete many of the restrictive covenants and certain events of default in the indenture governing the old notes, the firm said.
Holders may not deliver consents to the proposed amendments without tendering their old notes, and holders may not tender their old notes without delivering consents to the proposed amendments, according to Goodyear. The exchange offer is not conditioned on Goodyear's receipt of the consents necessary to effect the proposed amendments.
For each $1,000 principal amount of old notes validly tendered and accepted for exchange—and for which related consents are delivered—holders will receive $1,080 in principal amount of new notes, as well as a cash payment equal to the accrued and unpaid interest on their old notes from the last applicable interest payment date up to but excluding the date on which the exchange of old notes accepted for exchange is settled