AKRON, Ohio, May 13, 2020 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today announced that it has
priced its offering of $600 million
aggregate principal amount of 5-year senior notes. The notes will
be senior unsecured obligations of the company.
The notes will be offered to the public at a price of 100% of
their principal amount and will bear interest at a rate of 9.5% per
annum. Goodyear expects the offering to close on May 18, 2020, subject to customary closing
conditions.
Goodyear intends to use the net proceeds from this offering for
general corporate purposes, which may include repaying or redeeming
the company's outstanding 8.75% Notes due 2020 (the "2020 Notes")
at or prior to their maturity of August
15, 2020. Currently, there is approximately
$282 million in aggregate principal
amount of the 2020 Notes outstanding. Pending the use of proceeds
as described above, a portion of the net proceeds from this
offering may be temporarily applied to repay outstanding balances
under the company's revolving credit facilities.
Goldman Sachs & Co. LLC; Barclays Capital Inc.; BNP Paribas
Securities Corp.; BofA Securities, Inc.; Citigroup Global Markets
Inc.; Credit Agricole Securities (USA) Inc.; Deutsche Bank Securities Inc.; J.P.
Morgan Securities LLC; and Wells Fargo Securities, LLC are acting
as the joint book-running managers for the offering. BBVA
Securities Inc.; Banco Bradesco BBI S.A.; MUFG Securities Americas
Inc.; Natixis Securities Americas LLC; PNC Capital Markets LLC;
SMBC Nikko Securities America, Inc.; and UniCredit Capital Markets
LLC are acting as co-managers for the offering.
The offering was made under an effective shelf registration
statement that was filed with the U.S. Securities and Exchange
Commission and became automatically effective on May 13, 2020.
The offering of the notes may be made only by means of a
prospectus supplement and accompanying prospectus, copies of which
may be obtained from:
Goldman Sachs &
Co.
LLC
|
The Goodyear Tire
& Rubber Company
|
Prospectus
Department
|
Investor Relations
Department
|
200 West
Street
|
200 Innovation
Way
|
New York, NY
10282
|
Akron, OH
44316
|
Telephone:
866-471-2526
|
Telephone:
330-796-3751
|
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
Goodyear is one of the world's largest tire companies. It
employs about 63,000 people and manufactures its products in 46
facilities in 21 countries around the world. GT-FN
Certain information contained in this press release
constitutes forward-looking statements for purposes of the safe
harbor provisions of The Private Securities Litigation Reform Act
of 1995. There are a variety of factors, many of which are beyond
our control, that affect our operations, performance, business
strategy and results and could cause our actual results and
experience to differ materially from the assumptions, expectations
and objectives expressed in any forward-looking statements. These
factors include, but are not limited to: the impact on us of the
COVID-19 pandemic; our ability to implement successfully our
strategic initiatives; actions and initiatives taken by both
current and potential competitors; increases in the prices paid for
raw materials and energy; a labor strike, work stoppage or other
similar event; foreign currency translation and transaction risks;
deteriorating economic conditions or an inability to access capital
markets; work stoppages, financial difficulties or supply
disruptions at our suppliers or customers; the adequacy of our
capital expenditures; our failure to comply with a material
covenant in our debt obligations; potential adverse consequences of
litigation involving the company; as well as the effects of more
general factors such as changes in general market, economic or
political conditions or in legislation, regulation or public
policy. Additional factors are discussed in our filings with the
Securities and Exchange Commission, including our annual report on
Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K. In addition, any forward-looking statements represent our
estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While we may
elect to update forward-looking statements at some point in the
future, we specifically disclaim any obligation to do so, even if
our estimates change.
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SOURCE The Goodyear Tire & Rubber Company