Goodyear $2.7 billion U.S. credit facility to launch Friday

By Sara Rosenberg

New York, Feb. 23 - The Goodyear Tire & Rubber Co. is scheduled to hold a bank meeting on Friday to launch its $2.7 billion U.S. five-year credit facility consisting of $1.5 billion in asset-based loans and $1.2 billion in second-lien term loan debt, according to a market source.

The $1.5 billion asset-based credit facility contains two tranches - a $1 billion revolver and a $500 million term loan (otherwise known as a deposit funded term loan), the source said. Both tranches are being talked at Libor plus 200 basis points. JPMorgan and Citigroup are joint lead arrangers on the asset-based facility, with JPMorgan the left lead.

The $1.2 billion second-lien term loan is talked at Libor plus 325 basis points and is being joint led by JPMorgan and Deutsche, with JPMorgan the left lead, the source said.

Goodyear is also looking to get a euro equivalent of $650 million in credit facilities for its Goodyear Dunlop Tires Europe affiliate. This facility will be marketed in Europe via joint lead arrangers JPMorgan and BNP Paribas, with JPMorgan the left lead. A bank meeting to launch this euro facility into syndication is expected to take place in London possibly next week, the source added.

Proceeds from the new credit facility will be used to refinance an approximately $3.3 billion credit facility consisting of a $1.3 billion asset-based credit facility due March 31, 2006, a $650 million asset-based term loan due March 31, 2006, a $680 million deposit funded credit facility due Sept. 30, 2007 and $650 million in credit facilities for the Goodyear Dunlop Tires Europe affiliate due April 30, 2005.

Closing on the Akron, Ohio, tire company's new facility is expected to occur in early April.

© 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.