Goodyear increases term loan add-on to $650 million from $300 million

By Sara Rosenberg

New York, Feb. 3 - The Goodyear Tire & Rubber Co. increased the size of its in-market term loan to $650 million from $300 million, according to a company news release. JPMorgan and Citigroup are the lead banks on the deal.

The term loan, which is talked in the area of Libor plus 425 to 450 basis points, is an add-on to the Akron, Ohio, tire company's existing $1.3 billion asset-based credit facility.

Proceeds will be used to partially repay the company's existing U.S. term loan, to repay other debt and for general corporate purposes.

Goodyear has begun discussions with the lenders under its senior secured credit facilities about an amendment of those facilities. The amendment would allow for the $650 million term loan and future capital markets transactions and provide the new term loan and Goodyear's existing $1.3 billion asset-backed credit facility with a junior lien on certain of the collateral securing the company's other senior secured U.S. credit facilities.

"We are very happy with the level of interest this loan has generated," said Robert W. Tieken, executive vice president and chief financial officer, in the release. "This allows us to begin refinancing the loans put in place last year and further position the company to access capital markets going forward."

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