AKRON, Ohio, May 14, 2021 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today announced that it
has priced its private offering to eligible purchasers of
$850 million aggregate principal
amount of senior notes due 2029 (the "2029 notes") and $600 million aggregate principal amount of senior
notes due 2031 (the "2031 notes," and together with the 2029 notes,
the "notes"). The notes will be senior unsecured obligations of the
company.
The 2029 notes will be offered to eligible purchasers at a price
of 100% of their principal amount and will bear interest at a rate
of 5.000% per annum. The 2031 notes will be offered to eligible
purchasers at a price of 100% of their principal amount and will
bear interest at a rate of 5.250% per annum. Goodyear expects the
offering to close on May 18, 2021,
subject to customary closing conditions.
Goodyear intends to use the net proceeds from this offering,
together with cash on hand and borrowings under its revolving
credit facility, to fund the cash portion of the consideration for
the acquisition of Cooper Tire & Rubber Company and to pay fees
and expenses in connection with the acquisition and other
transactions related thereto.
The notes have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), or any applicable state
securities laws and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state laws. Goodyear plans to
offer and issue the notes only to qualified institutional buyers
pursuant to Rule 144A and to persons outside the United States pursuant to Regulation S, in
each case under the Securities Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the notes or any other securities
and shall not constitute an offer, solicitation or sale in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful. 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 success in completing our pending
acquisition of Cooper Tire & Rubber Company and our ability to
achieve the expected benefits of such acquisition; our ability to
pay or refinance our debts or take other actions as a result of
incurring significant additional indebtedness in connection with
the acquisition; our ability to implement successfully our
strategic initiatives; actions and initiatives taken by both
current and potential competitors; deteriorating economic
conditions or an inability to access capital markets; 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; 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