By Paul A. Harris
St. Louis, Nov. 16 - Goodyear Tire & Rubber Co. priced a $1 billion two-part offering of three- and five-year notes (B2/B-) on Thursday, according to an informed source.
The Akron, Ohio-based tire maker priced a $500 million tranche of five-year fixed-rate notes at par to yield 8 5/8%, on the tight end of the 8¾% area price talk.
Goodyear also priced a $500 million issue of three-year floaters at 99 with a coupon of six-month Libor plus 375 basis points, on top of price talk.
Goldman Sachs & Co. ran the books for the quick-to-market Rule 144A and Regulation S issue.
Proceeds will be used to repay at maturity $515 million of notes due Dec. 1, 2006 and March 1, 2007 and for general corporate purposes, which may include addressing the continuing strike by the United Steelworkers union.
| Issuer: | Goodyear Tire & Rubber Co.
|
| Amount: | $1 billion
|
| Security description: | Senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Co-managers: | BNP Paribas, Deutsche Bank
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Fixed-rate notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2011
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 396 bps
|
| Call features: | Callable on Dec. 1, 2009 at 104.313, 103.516, par on and after Dec. 1, 2011
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at 108.625
|
| Price talk: | 8¾% area
|
|
|
| Floating-rate notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2009
|
| Coupon: | Six-month Libor plus 375 bps
|
| Price: | 99.00
|
| Call: | Callable for life at par
|
| Price talk: | Libor plus 375 at 99.00
|
© 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.
