AKRON (Feb. 23, 2004) — Goodyear has completed a new $650 million secured term loan arranged by JPMorgan Chase & Co. and Citigroup Inc. to help pay down some debt and for general corporate purposes.
Goodyear had sought the loan as an addition to a $1.3 billion asset-based credit facility arranged last year as part of a larger package negotiated to replace $2.94 billion in financing with $3.3 billion in credit facilities. Goodyear said it also is moving forward with plans to offer about $650 million in private senior secured notes, with the value of those notes to be determined by market conditions.
Of the $650 million term loan, $335 million will be used partially to repay Goodyear's existing $583 million U.S. term loan, plus other indebtedness, the Akron-based tire maker said.
Goodyear said its principal lenders have approved amendments to the company's senior secured credit facilities that will allow for this loan as well as future capital markets transactions that could be secured by a junior lien on certain collateral securing the company's other senior secured U.S. credit facilities.
“Goodyear is now positioned to move forward with our plan to refinance the loans we put in place last year and to drive the company's turnaround,” said Bob Tieken, executive vice president and CFO.