AKRON (March 15, 2004) — Goodyear has completed its $650 million private offering of senior secured notes, allowing the tire maker to pay down some debt and fund general corporate expenses.
Goodyear said proceeds of the notes were used to repay the remaining amount outstanding under the firm's U.S. term loan facility, reduce its $750 million U.S. revolving credit facility to $680 million, as well as for general corporate purposes.
The notes, due in 2011, include $450 million of senior secured notes at 11 percent and $200 million of senior secured floating rate notes, which pay a variable interest rate of eight percentage points over six-month London Interbank Offering Rate (LIBOR). The notes are secured by junior liens on certain collateral securing the company's senior secured U.S. credit facilities.
The completion of this financing is in addition to a recently negotiated $650 million term loan that was added to last year's financing package.