Goodyear redeeming €250M in senior notes to make $8M saving

Goodyear Dunlop Tires Europe B.V. will redeem all of its outstanding €250 million aggregate principal amount of 6.75 per cent senior notes due 2019, reported parent company Goodyear Tire & Rubber today. The redemption will take place on 14 January 2016 at a price that is 103.375 per cent of the principal amount of the notes being redeemed, plus accrued and unpaid interest up to that date.

The tyre maker intends to use the net proceeds from Goodyear Dunlop Tires Europe’s €250 million aggregate principal amount of senior notes due 2023, which closed 15 December 2015, together with its current cash and cash equivalents, to fund the redemption. It says the transactions will result in interest expense savings of approximately US$8 million in 2016 and beyond.