Goodyear amends European revolver, lifting commitments to €550 million

By Susanna Moon

Chicago, May 13 – Goodyear Tire & Rubber Co. and majority-owned subsidiary Goodyear Dunlop Tires Europe BV amended the European revolving credit facility Tuesday, lifting commitments to €550 million.

The company also pushed out the maturity to May 12, 2020 and reduced the commitment fee by 20 basis points to 30 bps, according to an 8-K filing with the Securities and Exchange Commission.

The amended facility consists of a €125 million German tranche that is available only to Goodyear Dunlop Tires Germany GmbH and a €425 million all-borrower tranche that is available to GDTE, GDTG and Goodyear Dunlop Tires Operations SA. Up to €150 million of swingline loans and €50 million in letters of credit are available for issuance under the all-borrower tranche.

Interest will be Libor plus 175 bps.

The commitments were upsized from €400 million.

The amended facility requires the company to maintain a ratio of consolidated net J.V. debt to consolidated European J.V. EBITDA for a period of four consecutive fiscal quarters of no more than 3 times at the end of any fiscal quarter.

J.P. Morgan Europe Ltd. is the administrative agent, and JPMorgan Chase Bank, NA is the collateral agent.

Goodyear is an Akron, Ohio-based tire company.

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