Goodyear greenshoe lifts convertible preferred stock to $500 million

By Melissa Kory

Cleveland, March 31 - Goodyear Tire & Rubber Co. announced that underwriters exercised the $65 million over-allotment option for 1.3 million of the company's mandatory convertible preferred shares, lifting the issue to 10 million shares, or $500 million.

The preferreds were issued at $50.00 per share.

The Akron, Ohio, tire maker originally issued the convertible preferreds on Monday at par with a dividend of 5.875% and an initial conversion premium of 25%.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Credit Agricole Securities (USA) Inc. served as the joint bookrunners for the offering.

Goodyear intends to use the proceeds from the offering to redeem $350 million of its outstanding 10.5% senior notes due May 15, 2016 at 110.5 plus accrued interest to the redemption date.

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