Goodyear draws nearly $1 billion in credit during strike

Akron, Ohio - Goodyear borrowed nearly $1000 million under an existing credit facility to improve its cash position during the United Steelworkers´ strike against 16 plants in the US and Canada, the tyre maker said.

Goodyear borrowed $300 million on Oct. 5-the day the strike began-and another $675 million on 13 Oct. Both were under Goodyear´s $1500 million US First Lien Credit Facility, which is now almost fully drawn considering its $500 million deposit-funded facility, Goodyear added.

"Before the start of the United Steelworkers' strike in North America, Goodyear had about $1300 million in cash and cash equivalents and approximately $1600 million in available credit lines," said Richard Kramer, executive vice president and CFO. "This action provides additional cash in the unlikely event of a prolonged strike."

Kramer added that Goodyear is shipping product to customers from existing inventory, operating non-affected tyre plants as usual and operating affected plants with salaried employees in addition to importing supply from international operations.

About 15 000 union workers are participating in the strike.

From Rubber & Plastics News (A Crain publication)

Goodyear hunkers down with $1B for strike CNN (US)

Goodyear strike could affect Humvee tire supply to militar 49News (US - Kansas)

Text of Goodyear executive's letter to employees AP via Fayetteville online (US - North Carolina)