Goodyear Redeems $350 Million in Senior Notes

The Goodyear Tire & Rubber Company has announced that it has completed its previously announced redemption of $350 million in senior notes due 2016. A statement from the company continues: “Following its successful mandatory convertible preferred stock offering in March, Goodyear exercised its right to redeem $350 million in aggregate principal amount of its outstanding 10.500% senior notes due 2016. The redemption price was 110.5 per cent of the principal amount of the notes redeemed, plus accrued and unpaid interest to, but excluding, May 27, 2011. The redemption will result in savings to annualized interest expense of approximately $40 million, of which about $23 million will be realized in 2011.”

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