Goodyear to sell $600 million five-year notes in Wednesday drive-by; initial talk mid-9% area

By Paul A. Harris

Portland, Ore., May 13 – Goodyear Tire & Rubber Co. plans to price a $600 million public offering of five-year senior notes in a Wednesday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial talk has the notes coming to yield in the mid-9% area, a trader said.

Goldman Sachs & Co. LLC is the left bookrunner. Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

The notes become callable after two years at par plus 50% of the coupon.

The Akron, Ohio-based tire manufacturer plans to use the proceeds for general corporate purposes, which may include repaying or redeeming its 8¾% notes due Aug. 15, 2020 at or prior to maturity, prior to which proceeds may be applied to repaying debt under its revolver.

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