The Goodyear Tire & Rubber Company today announced its European subsidiary, Goodyear Dunlop Tires Europe B.V. (GDTE), will redeem all of its outstanding €250 million aggregate principal amount of 6.75% senior notes due 2019 on January 14, 2016.
The redemption price will be 103.375 percent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to January 14, 2016.
Goodyear intends to use the net proceeds from GDTE’s €250 million aggregate principal amount of senior notes due 2023, which closed December 15, 2015, together with its current cash and cash equivalents, to fund the redemption.
The transactions will result in interest expense savings of approximately $8 million in 2016 and beyond.
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.
