AKRON — Goodyear is planning to shore up its finances in the coming months with a public offering of two tranches of senior notes valued at $1 billion together.
Goodyear said it intends to use the net proceeds from this offering, together with existing cash and cash equivalents on hand, to redeem in full its outstanding $1 billion 5.125% senior notes due 2023. That action will follow, and be subject to, the completion of the new offering, at a redemption price equal to par plus accrued and unpaid interest to the redemption date.
The new notes are offerings of $550 million aggregate principal amount of senior notes due 2031 and $450 million aggregate principal amount of senior notes due 2033. The notes are considered senior unsecured obligations of the company.
The 2031 notes will be offered to the public at a price of 100% of their principal amount and will bear interest at a rate of 5.25% per annum. The 2033 notes will be offered to the public at a price of 100% of their principal amount and will bear interest at a rate of 5.625% per annum.
Goodyear said it expects the offering to close on April 6, subject to customary closing conditions.
The offering will be made under an effective shelf-registration statement that was filed with the U.S. Securities and Exchange Commission on May 13, 2020. The offering of the notes may be made only by means of a prospectus supplement and accompanying prospectus.