logo
Share SHARE
FONT-SIZE Plus   Neg

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

Goodyear Tire & Rubber Co. (GT: Quote) 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

Editors Pick
Internet video service Sling TV, on Wednesday said HBO would be available in time for the "Game of Thrones" and "Silicon Valley" season premieres on April 12, but did not specify a launch date. Memory chip maker Micron Technology, Inc. said Wednesday after the markets closed that its second quarter profit rose 28% from last year, helped by higher sales and lower income tax expenses. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly sales. Apple Watch is expected to post robust sales in the first weekend after its launch on April 24. A craze for Apple Watch may catapult the smartwatch industry into a lucrative market, while a not-so-impressive response for the Apple device may weigh on the industry.
comments powered by Disqus
RELATED NEWS
Trade GT now with 
Follow RTT