AKRON, Ohio, May 20, 2020 /PRNewswire/ -- The Goodyear Tire
& Rubber Company (NASDAQ: GT) today announced that it has
priced its offering of an additional $200
million aggregate principal amount of its 9.500% senior
notes due May 31, 2025. The notes
will be senior unsecured obligations of the company. The notes will
be offered to the public at a price of 101.75% of their principal
amount, plus accrued and unpaid interest from May 18, 2020. Goodyear expects the offering to
close on May 22, 2020, subject to
customary closing conditions.
The offering, together with the company's previously completed
issuance of $600 million of 9.500%
senior notes due 2025, increases the total aggregate principal
amount of these 9.500% senior notes due 2025 to $800 million.
Goodyear intends to use the net proceeds from this offering,
together with the net proceeds of the previously completed issuance
of $600 million of 9.500% senior
notes due 2025, 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