AKRON, Ohio, December 9, 2015 – The Goodyear Tire & Rubber Company today announced that its European subsidiary, Goodyear Dunlop Tires Europe B.V. (GDTE), has priced a private offering of €250 million aggregate principal amount of senior notes due 2023.
The notes will be offered by GDTE at a price of 100% of their principal amount and will bear interest at a rate of 3.75% per annum. Goodyear expects this offering to close on December 15, 2015, subject to customary closing conditions. The notes will be senior unsecured obligations of GDTE and will be guaranteed on a senior unsecured basis by Goodyear and certain of its wholly-owned U.S. and Canadian subsidiaries that also guarantee Goodyear’s obligations under certain of its senior secured credit facilities and senior unsecured notes.
GDTE intends to use the net proceeds from this offering, together with its current cash and cash equivalents, to redeem in full €250 million aggregate principal amount of its 6.75% senior notes due 2019.
The notes are being offered in a private placement to qualified institutional investors in the United States in accordance with Rule 144A under the Securities Act of 1933, as amended, and to persons outside the United States in accordance with Regulation S under the Securities Act. The offering and sale of the notes were not, and will not be, registered under the Securities Act or any state securities laws, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes or any other securities, nor shall there be any offer, solicitation or sale of the notes or any other securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful.
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.
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; increases in the prices paid for raw materials and energy; 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; 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.