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March 31, 2021, 8:11 a.m. EDT

UPDATE: Goodyear announces offering of $1 billion of high-yield bonds, amends credit agreement

The Goodyear Tire & Rubber Co. (NAS:GT) said Wednesday it has commenced a $1 billion offering of high-yield 10-year and 12-year bonds. Proceeds will be used along with cash on hand to redeem in full all outstanding $1 billion 5.125% senior notes due 2023. There are 20 banks underwriting the deal, led by Citigroup and Barclays. Goodyear announced a deal to acquire rival Cooper Tire & Rubber Co. in February in a $2.8 billion deal. Separately, the company said it has reached an agreement with JPMorgan Chase Bank NA and other lenders to amend and restate a credit agreement relating to its U.S. first lien revolving credit facility. The agreement will raise the principal it can borrow to $2.75 billion, lowers interest rates and extends the maturity date. Goodyear shares were down 3.64 premarket, but have gained 61% in the year to date, while the S&P 500 (S&P:SPX) has gained 5%.

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