AKRON, Ohio, May 13, 2016 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) today announced it will redeem all of its outstanding $900 million in principal amount of 6.5% 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 5.0% 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. Goodyear continues to expect interest expense to range between $350 million and $375 million for 2016.
Goodyear is one of the world's largest tire companies. It employs approximately 66,000 people and manufactures its products in 49 facilities in 22 countries around the world. GT-FN
Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; foreign currency translation and transaction risks; a labor strike, work stoppage or other similar event; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; increases in the prices paid for raw materials and energy; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
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SOURCE The Goodyear Tire & Rubber Company