The Goodyear Tire & Rubber Company today announced it will redeem all of its outstanding $900 million in principal amount of 6.5% senior notes due 2021 on June 13, 2016.
The redemption price will be 104.875 percent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to June 13, 2016.
Goodyear intends to use the net proceeds from its $900 million offering of 5.0% senior notes due 2026, which closed May 13, together with current cash and cash equivalents, to fund the redemption.
The transactions will result in annual interest expense savings of approximately
$14 million. Goodyear continues to expect interest expense to range between $350 million and $375 million for 2016.
Goodyear is one of the world’s largest tire companies. It employs approximately 66,000 people and manufactures its products in 49 facilities in 22 countries around the world.
