Goodyear Announces Pricing of Common Stock Offering
May 16 2007 - 9:12PM
PR Newswire (US)
AKRON, Ohio, May 16 /PRNewswire-FirstCall/ -- The Goodyear Tire
& Rubber Company today announced that its public offering of
22,727,272 shares of its common stock was priced at $33.00 per
share. In addition, Goodyear has granted the underwriters a 30-day
option to purchase up to an additional 3,409,091 shares of its
common stock to cover any over-allotments. The offering is expected
to close on May 22, 2007. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050204/GTLOGO ) Net proceeds
from this offering, after deducting underwriting discounts and
commissions, are expected to be approximately $725 million, or $834
million if the underwriters exercise their over-allotment option in
full. Goodyear intends to use the net proceeds from the offering to
redeem approximately $175 million in principal amount of its
outstanding 8.625% senior notes due in 2011 and approximately $140
million in principal amount of its outstanding 9.00% senior notes
due in 2015. The company expects to use the remaining net proceeds
of the offering for general corporate purposes, which may include,
among other things, investments in growth initiatives within the
company's core tire businesses and the repayment of additional
debt. Deutsche Bank Securities, Citi and Goldman, Sachs & Co.
served as joint book-running managers of the offering. A shelf
registration statement was filed with the U.S. Securities and
Exchange Commission and became automatically effective upon filing
on May 9, 2007. The offering of the common stock may be made only
by means of a prospectus supplement and the accompanying
prospectus, copies of which may be obtained from Deutsche Bank
Securities Prospectus Department, 100 Plaza One, Jersey City, NJ
07311, telephone: 800-503-4611, email: ; from Citigroup Global
Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor,
Brooklyn, NY 11220, telephone: 718- 765-6732; from Goldman, Sachs
& Co., Prospectus Department, 85 Broad St., New York, NY 10004,
telephone: 212-902-1171, fax: 212-902-9316, email: prospectus- ; or
from Goodyear's Investor Relations Department, 1144 E. Market St.,
Akron, OH 44316, telephone: 330-796-3751. This press 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. The company manufactures tires,
engineered rubber products and chemicals in more than 90 facilities
in 28 countries around the world. Goodyear employs more than 75,000
people worldwide. Certain information contained in this press
release may constitute 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 the company's control, which affect its operations,
performance, business strategy and results and could cause its
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: actions and initiatives taken by both current and
potential competitors; increases in the prices paid for raw
materials and energy; the company's ability to realize anticipated
savings and operational benefits from its cost reduction
initiatives, including those expected to be achieved under the
company's master labor contract with the United Steelworkers (USW)
and those related to the closure of certain of the company's
manufacturing facilities; whether or not the various contingencies
and requirements are met for the establishment of the Voluntary
Employee Beneficiary Association (VEBA) to be established to
provide healthcare benefits for current and future USW retirees;
the company's ability to execute its capital structure improvement
plan, including completing the sale of its Engineered Products
business; potential adverse consequences of litigation involving
the company; pension plan funding obligations as well as the
effects of more general factors such as changes in general market
or economic conditions or in legislation, regulation or public
policy. Additional factors are discussed in the company's filings
with the Securities and Exchange Commission, including the
company's annual reports 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.
http://www.newscom.com/cgi-bin/prnh/20050204/GTLOGO
http://photoarchive.ap.org/ DATASOURCE: The Goodyear Tire &
Rubber Company CONTACT: Media, Keith Price, +1-330-796-1863 or
Analysts, Greg Dooley, +1-330-796-6704, both of The Goodyear Tire
& Rubber Company Web site: http://www.goodyear.com/
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