The Goodyear Tire & Rubber Company today announced it will redeem all of its outstanding US$1 billion in principal amount of 8.25% senior notes due 2020 on December 7, 2015.
The redemption price will be 104.125% of the principal amount of the notes being redeemed, plus accrued and unpaid interest to December 7, 2015.
Goodyear intends to use the net proceeds from its US$1 billion offering of 5.125% senior notes due 2023, which closed November 5, together with current cash and cash equivalents, to fund the redemption.
The transactions will result in interest expense savings of approximately US$31 million in 2016 and beyond. Goodyear continues to expect interest expense to range between US$415 million and US$425 million for 2015.