Goodyear Dunlop Secures Additional Funding

Goodyear Tire & Rubber Co has said its Belgium-based joint venture with Japan’s Sumitomo Rubber Industries has arranged financing worth up to $365.5 million (£189.52 million), the associated press is reporting.

The transaction, which will be completed in euros, will provide $219.25 million to Goodyear Dunlop Tires Europe BV, Europe’s second-largest tyre maker. That amount, which will be secured through accounts receivables, could expand before the facility’s term ends in five years. Goodyear said the transaction is expected to be completed by the end of the year, and will replace an existing $109.6 million facility. The deal is subject to customary annual renewal of back-up liquidity lines, Goodyear said.

Shares of Goodyear rose 84 cents, or 6.43 per cent, to close at $13.91 in trading on the New York Stock Exchange. The stock increased another 5 cents to $13.96 in after-hours trade.