Published on 11/2/2015 in the Prospect News High Yield Daily.
New Issue: Goodyear prices $1 billion eight-year notes at par to yield 5 1/8%
By Paul A. Harris
Portland, Ore., Nov. 2 – Goodyear Tire & Rubber Co. priced a $1 billion issue of eight-year senior notes (Ba3/BB) at par to yield 5 1/8% on Monday, according to an informed source.
The yield printed at the tight end of yield talk in the 5¼% area.
Goldman Sachs & Co. was the left bookrunner. Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., HSBC Bank and J.P. Morgan Securities LLC were the joint bookrunners.
The Akron, Ohio-based manufacturer plans to use the proceeds, together with cash and cash equivalents, to redeem all of its 8¼% senior notes due 2020 at 104.125, plus accrued interest.
| Issuer: | Goodyear Tire & Rubber Co.
|
| Amount: | $1 billion
|
| Maturity: | Nov. 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., HSBC Bank, J.P. Morgan Securities LLC
|
| Co-managers: | BofA Merrill Lynch, Natixis, UniCredit, Wells Fargo Securities LLC
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 311 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2018, then callable at 102.563
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5¼% area
|
| Marketing: | Quick to market
|
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