Goodyear adds liquidity options
ERJ staff report (DS)
Akron, Ohio - The Goodyear Tire & Rubber Company said it has completed a refinancing of its principal U.S. credit facilities.
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 plus 150 basis points.
The company'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 chief financial officer. “We see this refinancing as a proactive step to improve our financial position, leaving us with no term debt repayments required until 2019.â€
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Goodyear
This article is only available to subscribers - subscribe today
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
- Every issue of European Rubber Journal (6 issues) including Special Reports & Maps.
- Unlimited access to ERJ articles online
- Daily email newsletter – the latest news direct to your inbox
- Access to the ERJ online archive