AKRON (Nov. 6, 2015) — Goodyear will redeem all of its outstanding $1 billion in principal amount of 8.25 percent senior notes due 2020 on Dec. 7, 2015.
The redemption price will be 104.125 percent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to Dec. 7, according to the Akron-based tire maker.
Goodyear said it intends to use the net proceeds from its $1 billion offering of 5.125 percent senior notes due 2023, which closed Nov. 5 — together with current cash and cash equivalents — to fund the redemption.
The transactions will result in interest expense savings of approximately $31 million in 2016 and beyond. The company said it continues to expect interest expense to range between $415 million and $425 million for 2015.