Goodyear sets discount price on $1.2 billion second-lien loan at 98

By Sara Rosenberg

New York, April 16 - Goodyear Tire & Rubber Co. finalized the original issue discount on its $1.2 billion senior secured second-lien term loan (Ba1/BB) at 98, the high end of revised talk of 98 to 98½ and wide of initial talk of 99, according to a source.

Pricing on the loan is Libor plus 375 basis points, after flexing earlier from Libor plus 325 bps.

There is a 1% Libor floor and 101 soft call protection for one year.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance an existing second-lien term loan.

Goodyear is an Akron, Ohio-based tire company.

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