Goodyear to redeem all $650 million senior secured notes due 2011

By Devika Patel

Knoxville, Tenn., Feb. 1 - Goodyear Tire & Rubber Co. said it will redeem all of its $650 million outstanding senior secured notes due 2011 on March 3.

The bonds consist of $450 million of fixed-rate notes, which carry an 11.25% coupon, and $200 million of floating-rate notes, which bear interest at Libor plus 825 basis points.

The fixed-rate notes will be redeemed at 105.5% and the floating-rate notes will be redeemed at 104%, plus interest on both series to the redemption date.

The company said it would save about $75 million to $80 million in interest payments from this redemption, of which about $65 million will be realized in 2008.

Goodyear is a tire manufacturer based in Akron, Ohio.

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