Published on 5/13/2021 in the Prospect News High Yield Daily.
New Issue: Goodyear prices $1.45 billion senior notes in two bullet tranches
By Paul A. Harris
Portland, Ore., May 13 – Goodyear Tire & Rubber Co. priced $1.45 billion of senior notes (B2/BB-/BB-) in two bullet tranches in a Thursday drive-by, according to market sources.
The deal included $850 million of eight-year notes that priced at par to yield 5%, at the tight end of the 5% to 5¼% yield talk. Initial guidance was 5¼% to 5½%.
The long tranche came as $600 million of 10-year notes that priced at par to yield 5¼%, at the tight end of the 5¼% to 5½% yield talk. Initial guidance was 5½% to 5¾%.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., Fifth Third Securities Inc., MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC.
The Akron, Ohio-based tire manufacturer plans to use the proceeds plus cash on hand and cash drawn from its revolver to fund the cash portion of its acquisition of Cooper Tire & Rubber Co.
| Issuer: | Goodyear Tire & Rubber Co.
|
| Amount: | $1.45 billion
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| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., Fifth Third Securities Inc., MUFG, PNC Capital Markets LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
|
| Trade date: | May 13
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| Settlement date: | May 18
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| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Drive-by
|
|
|
| Eight-year notes
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| Amount: | $850 million
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| Maturity: | July 15, 2029
|
| Coupon: | 5%
|
| Price: | Par
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| Yield: | 5%
|
| Spread: | 355 bps
|
| Call protection: | Non-callable
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| Price talk: | 5% to 5¼%
|
|
|
| 10-year notes
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| Amount: | $600 million
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| Maturity: | July 15, 2031
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| Coupon: | 5¼%
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| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 359 bps
|
| Call protection: | Non-callable
|
| Price talk: | 5¼% to 5½%
|
|
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