Goodyear refinances $3.2bn credit facilities
The Goodyear Tire & Rubber Company has completed refinancing its principal US credit facilities. Darren R Wells, executive vice president and chief financial officer, said the actions “position the company” to continue implementation of its Strategy Roadmap: “We see this refinancing as a proactive step to improve our financial position, leaving us with no term debt repayments required until 2019.”
Significant changes to the amended and restated agreements include:
• The company’s existing $1.5 billion asset-based revolving credit facility was increased to $2.0 billion and its maturity was extended to 2017. Loans under this facility will initially bear interest at LIBOR plus 150 basis points.
• The company’s existing $1.2 billion second lien term loan was extended to 2019. The loan will bear interest at LIBOR plus 375 basis points, subject to a LIBOR floor of 100 basis points. The amended and restated second lien term loan was issued with an original issue discount of 200 basis points.
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