Goodyear amends European credit facility, closes notes offering

Goodyear has today released the following statement about changes to its European credit facility: “The Goodyear Tire & Rubber Company today announced that it has amended and restated its European revolving credit facility and closed an offering of €250 million aggregate principal amount of senior notes due in 2019 by its European subsidiary, Goodyear Dunlop Tires Europe B.V. (GDTE). Changes to the European credit facility include the extension of the maturity to 2016 and the reduction of available commitments from €505 million to €400 million. Loans under the amended facility will bear interest at EURIBOR plus 250 basis points.

“The notes were issued by GDTE at par and will bear interest at an annual rate of 6.75 per cent.  The notes are senior unsecured obligations of GDTE and are guaranteed on a senior unsecured basis by Goodyear and its U.S. and Canadian subsidiaries that guarantee Goodyear’s senior credit facilities.  The net proceeds from the offering of the notes will be used to repay existing borrowings on the European revolving credit facility and for general corporate purposes.”