Published on 5/13/2020 in the Prospect News High Yield Daily.
New Issue: Goodyear prices $600 million five-year notes at par to yield 9½%
By Paul A. Harris
Portland, Ore., May 13 – Goodyear Tire & Rubber Co. priced a $600 million issue of five-year senior notes (B2/B+/BB-) at par to yield 9½% in a Wednesday drive-by, according to market sources.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, 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.
The yield printed in the middle of yield talk in the 9½% area and in line with early guidance in the mid-9% area.
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 revolving credit facility.
| Issuer: | Goodyear Tire & Rubber Co.
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| Amount: | $600 million
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| Maturity: | May 31, 2025
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| Securities: | Senior notes
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Barclays, 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
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| Co-managers: | BBVA Securities Inc., Banco Bradesco BBI SA, MUFG, Natixis Securities Americas LLC, PNC Capital Markets LLC, SMBC Nikko Securities America Inc. and UniCredit Capital Markets LLC
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| Coupon: | 9½%
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| Price: | Par
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| Yield: | 9½%
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| Spread: | 917 bps
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| Call protection: | Two years
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| Trade date: | May 13
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| Settlement date: | May 18
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| Ratings: | Moody's: B2
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| S&P: B+
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| Fitch: BB-
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| Distribution: | SEC registered
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| Price talk: | 9½% area
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| Marketing: | Drive-by
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