Goodyear Calls for Redemption of $973 Million in Senior Notes

The Goodyear Tire & Rubber Company has called all of its outstanding senior notes due in 2011 and 2015 for redemption on 29 September, 2010. Goodyear intends to use net proceeds from its recent $1 billion issuance of 8.25 per cent senior notes due 2020 to fund these redemptions. The notes called for redemption are $388 million in principal amount of 7.857 per cent senior notes due on 15 August, 2011, $325 million in principal amount of 8.625 per cent senior notes due on 1 December, 2011, and $260 million in principal amount of 9 per cent senior notes due on 1 July, 2015.

The contractual redemption price for the 7.857 per cent notes is the sum of the present values of the remaining scheduled payments on the notes, discounted to the redemption date using a defined treasury rate plus 35 basis points (0.35 per cent), and will be determined as of the third business day prior to the redemption date. The contractual redemption price for the 8.625 per cent notes is 104.313 per cent of the principal amount and for the 9 per cent notes is 104.500 per cent of the principal amount. In each case, accrued and unpaid interest will be paid to the redemption date.