AKRON—Goodyear is planning to shore up its finances in the coming months with a public offering of two tranches of senior notes valued at $1 billion together.
Goodyear said it intends to use the net proceeds from this offering, together with existing cash and cash equivalents on hand, to redeem in full its outstanding $1 billion 5.125 percent senior notes due 2023. That action will follow, and be subject to, the completion of the new offering, at a redemption price equal to par plus accrued and unpaid interest to the redemption date.
The new notes are offerings of $550 million aggregate principal amount of senior notes due 2031 and $450 million aggregate principal amount of senior notes due 2033. The notes are considered senior unsecured obligations of the company.
The 2031 notes will be offered to the public at a price of 100 percent of their principal amount and will bear interest at a rate of 5.25 percent per annum. The 2033 notes will be offered to the public at a price of 100 percent of their principal amount and will bear interest at a rate of 5.625 percent per annum.
Goodyear said it expects the offering to close on April 6, subject to customary closing conditions.
The offering will be made under an effective shelf-registration statement that was filed with the U.S. Securities and Exchange Commission on May 13, 2020. The offering of the notes may be made only by means of a prospectus supplement and accompanying prospectus.