Goodyear Offers Convertible Notes [Update]

Only hours after announcing that it would offer a $150 million aggregate principal amount of convertible notes, Goodyear has said that it is doubling the total amount available to $300 million.

The notes can also be converted into shares at a rate of 83.07 shares per $1000 principal amount of notes, which is equivalent to $12.04 per share. When compared to the closing price of the company’s common stock on the New York Stock Exchange ($9.26 last night), this represents a 30 per cent premium.

The convertible notes are senior unsecured obligations of the company and will be due 15 June, 2034. They will accrue interest at four per cent.

Goodyear will continue to offer purchasers a 30-day option to purchase more notes up to a maximum of $50 million aggregate principal amount of notes.