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

Quick Facts

Editors Pick
Hartford Financial reported a decline in first-quarter profit, despite growth in premiums, due mainly to the absence of gains recorded last year. Apple Inc. said Monday after the markets closed that its second quarter profit rose 33% from last year, driven by strong sales of iPhone and Mac as well as all-time record performance of the App Store. The company's quarterly earnings per share also breezed past Wall Street expectations as did its quarterly sales. C.H. Robinson Worldwide Inc. (CHRW), one of the largest transportation logistics firm in North America, Monday reported an increase in first-quarter profit, driven largely by a 5 percent revenue growth. However, earnings for the quarter fell short of Wall Street estimates by a penny, as did revenues. Eden...
comments powered by Disqus
RELATED NEWS
Trade GT now with 
Follow RTT