Goodyear Redeems $650 Million of Outstanding Notes

Goodyear Tire & Rubber Company has announced the completion of its previously announced redemption of $650 million of outstanding senior secured notes due 2011. The redemption results in annualised interest savings of between $75 million to $80 million. In a statement on the subject the company explained that savings of $65 million will be realized in 2008.

“Eliminating this high-cost debt is an important step in our debt reduction plan,” said Damon J. Audia, Goodyear’s vice president and treasurer. “Since January 2007, we have removed more than $3 billion in debt from our balance sheet.” Audia also confirmed the company’s previously announced intention to repay $100 million in 6 3/8 per cent notes when they mature on 17 March 2008.