Goodyear raising $500m through five-year bond issue

Akron, Ohio – Goodyear Tire & Rubber Co. is raising $500 million (€440 million) through a five-year senior notes offering, the US tire maker announced 29 May.

The notes, priced at 100% of face value, carry a 6.625% annual interest rate and are expected to close on 3 June, subject to customary closing conditions.

The senior unsecured bonds will be offered to the public under an effective shelf registration statement filed with the US Securities and Exchange Commission.

Goodyear said it will use the proceeds from the offering to partially redeem its outstanding 5.000% senior notes, with a total value of $900 million, due 2026.

The $400 million remainder of the outstanding notes will be redeemed using part of the cash generated from the recent sale of Dunlop brand. (ERJ report)