logo
Share SHARE
FONT-SIZE Plus   Neg

Goodyear To Redeem $650 Mln In Senior Notes - Quick Facts

Goodyear Tire & Rubber Co. (GT) said that it called for redemption on March 29, 2012 all of its outstanding $650 million 10.5% senior unsecured notes due 2016.

The redemption price will be the present value at the redemption date of (i) 107.875 percent of the principal amount being redeemed, plus (ii) the amount of the interest payment scheduled for May 15, 2012 less accrued and unpaid interest to March 29, 2012, computed using a discount rate equal to the yield of a comparable U.S. Treasury security plus 0.50 percent. In addition, holders will receive accrued and unpaid interest to March 29, 2012.

Goodyear stated that it intends to use the net proceeds from its $700 million offering of 7.0% senior notes due 2022, which closed today, together with current cash and cash equivalents, for the redemption.

The transactions will result in interest expense savings of approximately $25 million in 2013. Goodyear continues to expect interest expense to range between $360 million and $385 million for 2012.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Social media app Snapchat has introduced a new location service, Snap Map, that will allow users of the app to see the location of all their friends on a map. The new feature will essentially allow a user to see where his friends are hanging out and what they are up to and also share his own location with friends in real time. The U.S. has suspended all imports of fresh beef from Brazil due to recurring concerns about the safety of the products. The suspension of shipments from Brazil, the fifth largest exporter of beef to the U.S., will remain in place until the Brazilian Ministry of Agriculture takes corrective action, the U.S. Department of Agriculture or USDA said in a statement. The annual Federal stress test was cleared by 34 top banks. The result shows strong capital levels and the ability of large banks to remain capitalized even in stressed situations. The Federal Reserve noted that these banks will be able to lend to households and businesses even at severe recession and throughout the economic cycle.
comments powered by Disqus
Follow RTT