New Issue: Goodyear prices $400 million 10-year notes at par to yield 9%

By Paul A. Harris

St. Louis, June 20 - Goodyear Tire & Rubber Co. priced a $400 million issue of 10-year senior notes (B3/B-) at par in a quick-to-market transaction to yield 9%, according to a market source.

Price talk was in the 9% area.

Citigroup, BNP Paribas, Credit Suisse First Boston, Goldman Sachs & Co. and JP Morgan were joint bookrunners for the Rule 144A/Regulation S with registration rights issue.

Proceeds will be used to repay $200 million of the company's 4.9% bank debt due July 5 and to replace $190 million of the cash it used to pay $516 million of 6 3/8% euro notes due 2005 at maturity on June 6.

The company may use the $190 million in cash to repay other debt and for general corporate purposes.

The issuer is an Akron, Ohio, tire company.

Issuer:	Goodyear Tire & Rubber Co.
Amount:	$400 million
Maturity:	July 1, 2015
Security description:	Senior notes
Bookrunners:	Citigroup, BNP Paribas, Credit Suisse First Boston, Goldman Sachs, JP Morgan
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	491 basis points
Call features:	Callable after July 1, 2010 at 104.50, 103.0, 101.50, par on and after July 1, 2013
Equity clawback:	Until July 1, 2008 for 35% at 109.0
Trade date:	June 20
Settlement date:	June 23
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	9% area

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