Goodyear to redeem $700M in senior notes

The Goodyear Tire & Rubber Company will redeem all of its outstanding US$700 million in principal amount of 7.0 per cent senior notes due 2022 on 15 May 2017. The redemption price will be 103.50 per cent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to 15 May 2017. The tyre maker intends to use the net proceeds from its $700 million offering of 4.875 per cent senior notes due 2027, which closed 7 March together with current cash and cash equivalents, to fund the redemption.

The transactions will result in annual interest expense savings of approximately $15 million, beginning in 2018. Goodyear continues to expect interest expense to range between $340 million and $365 million for 2017.                               _sg