AKRON —– Goodyear is offering $1.45 billion in senior debt as part of the company's plan to finance its pending purchase of Cooper Tire & Rubber Co.
The private offering to "eligible purchasers" includes both 8- and 10-year senior unsecured notes issued by the Akron-based tire maker.
Goodyear said it intends to use the net proceeds from this offering, together with cash on hand and borrowings under its revolving credit facility, to fund the cash portion of the consideration for the acquisition of Cooper.
Goodyear stated it plans to offer and issue the notes only to "qualified institutional buyers" pursuant to Rule 144A of the Securities Act and to persons outside the U.S. pursuant to Regulation S.
The company did not disclose pricing terms for the notes.
The money also will go toward fees and expenses associated with the $2.5 billion purchase of Findlay, Ohio-based Cooper.
