US: Goodyear announces conversion period for convertible notes
Thursday, July 19, 2007, AutomotiveWorld.com
Goodyear Tire & Rubber has said its 4% convertible senior notes due on 15 June 2034 are now convertible at the option of the holders. They will remain convertible through 28 September 2007, the last business day of the current fiscal quarter.
According to Goodyear, the notes became convertible because 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 17 July was greater than 120% of the conversion price in effect on such day.
The company said it will deliver shares of its common stock or pay cash upon conversion of any notes surrendered on or prior to 28 September. If shares are delivered, cash will be paid in lieu of fractional shares only.
The 4% convertible senior notes, which were issued in June 2004, 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 US$12.04 per share. There is about US$350m in aggregate principal amount of notes outstanding.
Published on Thursday, July 19, 2007
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