AKRON (Aug. 12, 2010)—Goodyear has priced its offering of $900 million aggregate principal amount of 8.25 percent senior notes due Aug. 15, 2020.
The notes, which will be senior unsecured obligations of the company, will be sold at 99.163 percent of the principal amount. Goodyear said it expects the offering to close Aug. 13, subject to customary closing conditions.
The offering was increased from the $750 million offering that was previously announced. Goodyear said it intends to use net proceeds from the offering—along with its current cash, cash equivalents and unused availability under its credit facilities—to redeem $325 million in principal amount of 8.625 percent senior notes due 2011 and about $388 million in principal amount of 7.857 percent notes also due next year.
Goodyear plans to use the remaining net proceeds for general corporate purposes, the Akron-based tire maker said, including the repayment of other outstanding debts.
Deutsche Bank Securities Inc., Barclays Capital Inc. and Morgan Stanley & Co. Inc. served as joint book-running managers for the offering, Goodyear said. A shelf registration statement was filed Aug. 10 with the U.S. Securities and Exchange Commission and became effective upon filing.