ERJ staff report (R&PN)
Akron , Ohio -- Goodyear has started a public offering of $435 million of mandatory convertible preferred stock, subject to market and other customary conditions.
The offering consists of 8.7 million shares with an offering price of $50 per share, Goodyear said. The company intends to grant the underwriters of the offering a 30-day option to purchase an additional 1.3 million shares of mandatory convertible preferred stock.
The tyre maker estimates the net proceeds from this offering will be approximately $421 million. The estimated net proceeds would be approximately $484 million if the underwriters exercise their option to purchase additional shares in full.
Goodyear intends to use the net proceeds from the offering to redeem $350 million in principal amount of its outstanding 10.5 percent senior notes due May 15, 2016, at the redemption price of 110.5 percent of the principal amount plus accrued and unpaid interest to the redemption date.
From Rubber & Plastics News (A Crain publication)
Press release from Goodyear