AKRON (April 20, 2012)—Goodyear has completed a refinancing of its principal U.S. credit facilities.
The Akron-based tire maker said significant changes to the amended and restated agreements include:
— The company's existing $1.5 billion asset-based revolving credit facility was increased to $2.0 billion and its maturity was extended to 2017. Loans under this facility will initially bear interest at LIBOR (London Interbank Offered Rate)—the average interest rate that leading banks in London charge when lending to other banks—plus 150 basis points; and
— Goodyear's existing $1.2 billion second lien term loan was extended to 2019. The loan will bear interest at LIBOR plus 375 basis points, subject to a LIBOR floor of 100 basis points. The amended and restated second lien term loan was issued with an original issue discount of 200 basis points.
“These financing actions position the company to continue to implement its Strategy Roadmap,” said Darren R. Wells, executive vice president and CFO. “We see this refinancing as a proactive step to improve our financial position, leaving us with no term debt repayments required until 2019.”