AKRON (April 12, 2005) — Goodyear closed $3.65 billion in new credit facilities, refinancing debt that would have matured in 2005, 2006 and 2007.
The new facilities will be due in 2010 and 2011, Goodyear said.
“Extending our debt maturities is a key component of the company's capital structure improvement plan,” said Richard Kramer, executive vice president and CFO. “This refinancing addresses the majority of our maturities through 2009 and provides cost-effective financing.”
The new facilities include: a $1.5 billion asset-based revolving credit facility due in 2010; a $1.2 billion second-lien term loan due in 2010; a $300 million third-lien secured term loan due in 2011; and the Euro equivalent of a $650 million credit facility for Goodyear Dunlop Tires Europe due in 2010. The items replace: a $1.3 billion asset-based facility due in 2006; a $650 million asset-based term loan due in 2006; a $680 million deposit funded credit facility due in 2007; and a $650 million facility for Goodyear Dunlop Tires Europe due April 30.
In its 2004 10-K report, Goodyear said it held about $5.68 billion in debt, up 11.8 percent from year-end 2003.