Goodyear Offers Convertible Notes

In an attempt to liquidate some cash Goodyear Tire & Rubber Co. has said that it will “commence an offering of approximately $150 million aggregate principal amount of convertible notes, subject to market and other customary conditions.” The company intends to use the proceeds of the sale for what it calls “general corporate purposes”, which includes “the repayment of one of the company’s revolving credit facilities.”

Initial purchasers will be granted the option of buying additional aggregate principal notes up to a limit of $50 million within 30 days.

Goodyear’s shares prices closed at $9.85 on Friday, 25 June a figure that compares favourably with the company’s 52-week high of $11.97.