Goodyear Extends Debt Maturities

(Akron/Tire Review) The Goodyear Tire & Rubber Co announced that it has closed $3.65 billion in new credit facilities, including a $1.5 billion asset-based revolving credit facility due in 2010.

Other credit facilities include a $1.2 billion second-lien term loan due in 2010 and a $300 million third-lien secured term loan facility due in 2011.

For Goodyear’s Dunlop Tires Europe affiliate, the company has closed the euro equivalent of approximately $650 million, consisting of a $450 million revolving credit facility due in 2010 and a $200 million term loan due in 2010.

The new credit facilities replace a $1.3 billion asset-based credit facility due in 2006, a $650 million asset-based term loan due in 2006, a $680 million deposit funded credit facility due in 2007 and $650 million in credit facilities for Goodyear Dunlop Tires Europe due Apr. 30.

“Extending our debt maturities is a key component of the company’s capital structure improvement plan,” said Richard J. Kramer, executive vice president and chief financial officer. “This refinancing addresses the majority of our maturities through 2009 and provides cost-effective financing.”