The Goodyear Tire & Rubber Co. announced it will redeem all of its outstanding $700 million in principal amount of 7 percent senior notes due 2022 on May 15.

The redemption price will be 103.50 percent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to May 15.

Goodyear intends to use the net proceeds from its $700 million offering of 4.875 percent senior notes due 2027, which closed March 7, together with current cash and cash equivalents, to fund the redemption.

The transactions will result in annual interest expense savings of approximately $15 million beginning in 2018. Goodyear continues to expect interest expense to range between $340 million and $365 million for 2017.