AKRON, Ohio, April 27, 2011 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NYSE: GT) has called $350 million of its outstanding 10.500% senior notes due 2016 for redemption on May 27, 2011. Goodyear intends to use net proceeds from its recent mandatory convertible preferred stock offering to fund the redemption.
The redemption will result in savings to annualized interest expense of approximately $40 million, of which about $23 million will be realized in 2011.
The redemption price is 110.500% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to May 27, 2011. The redemption is pursuant to provisions of the notes that allow the company, at its option, to redeem up to 35 percent of the original principal amount of the notes with proceeds from one or more equity offerings.
Goodyear is one of the world's largest tire companies. It employs approximately 72,000 people and manufactures its products in 55 facilities in 22 countries around the world. For more information about Goodyear or its products, go to www.goodyear.com.
Certain information contained in this press release may constitute 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 realize anticipated savings and operational benefits from our cost reduction initiatives or to implement successfully other strategic initiatives; increases in the prices paid for raw materials and energy; pension plan funding obligations; actions and initiatives taken by both current and potential competitors; 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; a labor strike, work stoppage or other similar event; 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.