By Paul A. Harris
St. Louis, Aug. 10 - Goodyear Tire & Rubber Co. priced an upsized $900 million issue of 8¼% 10-year senior notes (B1/B+/) at 99.163 to yield 8 3/8% on Tuesday, according to an informed source.
The yield printed at the wide end of the 8¼% area yield talk. The reoffer price came in line with discount talk of zero points to 1 point.
Deutsche Bank Securities Inc., Barclays Capital Inc. and Morgan Stanley & Co. were the joint bookrunners for the quick-to-market deal, which was upsized from $750 million.
Proceeds, together with cash and cash equivalents and unused availability under the credit facilities, will be used to redeem $325 million of 8 5/8% senior notes due 2011 and about $388 million of 7.857% notes due 2011.
Goodyear intends to use any remaining net proceeds for general corporate purposes, which may include the repayment of other outstanding debt.
Goodyear is an Akron, Ohio-based tire company.
| Issuer: | Goodyear Tire & Rubber Co.
|
| Face amount: | $900 million, increased from $750 million
|
| Proceeds: | $892,467,000
|
| Maturity: | Aug. 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Barclays Capital Inc., Morgan Stanley & Co.
|
| Coupon: | 8¼%
|
| Price: | 99.163
|
| Yield: | 8 3/8%
|
| Spread: | 562 bps
|
| Call protection: | Five years
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 13
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Price talk: | 8¼% area with 0-1 point OID
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
