The Goodyear Tire & Rubber Co. announced it will redeem all of its outstanding $900 million in principal amount of 6.5 percent senior notes due 2021 on June 13, 2016.
The redemption price will be 104.875 percent of the principal amount of the notes being redeemed, plus accrued and unpaid interest to June 13, 2016. Goodyear intends to use the net proceeds from its $900 million offering of 5 percent senior notes due 2026, which closed May 13, together with current cash and cash equivalents, to fund the redemption.
The transactions will result in annual interest expense savings of approximately $14 million.
