AKRON (June 29, 2004) — Goodyear has increased the amount of aggregate principal amount of convertible notes to $300 million from the previously announced $150 million.
The convertible notes are senior unsecured obligations of the company and will be due June 15, 2034 at an interest rate of 4 percent. The notes are convertible into shares of Goodyear common stock initially at a conversion rate of 83.07 shares per $1,000 principal amount of notes. That is equal to an initial conversion price of $12.04 per share. Goodyear has granted the initial purchasers of the notes a 30-day option to purchase up to an additional $50 million aggregate principal amount of the notes.
Goodyear said it will use the net proceeds from the offering for general corporate purposes, which may include temporary repayment of one of the company's revolving credit facilities.
A Goodyear spokesman said the notes still are in the purchasing process, but strong demand pushed up the offering.
“The demand yesterday (June 28) was such that we needed to increase it,” he said.