The Goodyear Tire & Rubber Company announced its European subsidiary, Goodyear Dunlop Tires Europe B.V. (GDTE), will redeem all its outstanding EUR250 million aggregate principal amount of 6.75 percent 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 EUR250 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 US$8 million in 2016 and beyond.