Goodyear Tire & Rubber to launch $1.3 billion loan on Friday

By Sara Rosenberg

New York, March 5 - The Goodyear Tire & Rubber Co. is scheduled to launch a new $1.3 billion asset-based credit facility due 2006 on Friday, according to market sources. JPMorgan and Citigroup are the lead banks on the loan.

The new loan is expected to consist of an institutional tranche in the range of $500 to $700 million with price talk of Libor plus 350 basis points. The remainder of the facility will be in the form of a revolver, sources said.

Furthermore, the Akron, Ohio tire company has received an extension on waivers through April 4 from March 7 to comply with certain covenants under its credit agreements. The extension allows Goodyear to continue to access its revolvers while working on restructuring, refinancing and extending certain loan agreements into 2005.

The new $1.3 billion credit facility will provide additional liquidity and funds to repay certain facilities. The new loan would take effect with the successful completion of the amendments, according to a news release.

© 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.