Goodyear Announces Conversion Period for Convertible Notes
On April 16 Goodyear announced that its remaining 4.00 per cent Convertible Senior Notes, due June 15, 2034, are now convertible at the holders’ option and will be convertible through to June 30, 2008, the final business day of the current fiscal quarter. The notes became convertible as the last reported sale price of the company’s common stock for at least 20 trading days during the 30 consecutive trading-day period ending on April 15, 2008 (the 11th trading day of the current fiscal quarter), was greater than 120 per cent of the conversion price in effect on such day.
The company will deliver shares of its common stock or pay cash upon conversion of any notes surrendered on or prior to June 30, 2008. If shares are delivered, cash will be paid in lieu of fractional shares only. Issued in July 2004, the notes are currently convertible at a rate of 83.0703 shares of common stock per US$1,000 principal amount of notes, which is equal to a conversion price of $12.04 per share.