FINDLAY, Ohio (Jan. 18, 2005) — Cooper Tire & Rubber Co. intends to use between $100 million and $200 million of the proceeds from the sale of its Cooper-Standard Automotive unit to reduce debt and $60 million to fund pension obligations.
Cooper disclosed its intentions in an 8K filing with the Securities and Exchange Commission.
The Findlay-based tire maker is receiving about $1.17 billion for Cooper-Standard from an entity formed by Cypress Group and Goldman Sachs Capital Partners.
The company listed long-term debt of $775.6 million and “other long-term liabilities” of $202.8 million in its third quarter 10-Q SEC filing.
Cooper also said it would use the rest of the proceeds—or as much as $900 million—to invest in its tire operations and/or buy back shares. The tire unit investments would include the announced acquisition of a minority stake in South Korea's Kumho Tire Co. Inc.