By Paul A. Harris
St. Louis, Nov. 16 - Goodyear Tire & Rubber Co. priced a $1 billion two-part offering of three- and five-year notes (B2/B-) on Thursday, according to an informed source.
The Akron, Ohio-based tire maker priced a $500 million tranche of five-year fixed-rate notes at par to yield 8 5/8%, on the tight end of the 8¾% area price talk.
Goodyear also priced a $500 million issue of three-year floaters at 99 with a coupon of six-month Libor plus 375 basis points, on top of price talk.
Goldman Sachs & Co. ran the books for the quick-to-market Rule 144A and Regulation S issue.
Proceeds will be used to repay at maturity $515 million of notes due Dec. 1, 2006 and March 1, 2007 and for general corporate purposes, which may include addressing the continuing strike by the United Steelworkers union.
Issuer: | Goodyear Tire & Rubber Co.
|
Amount: | $1 billion
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Security description: | Senior notes
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Bookrunner: | Goldman Sachs & Co.
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Co-managers: | BNP Paribas, Deutsche Bank
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Trade date: | Nov. 16
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Settlement date: | Nov. 21
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Ratings: | Moody's: B2
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| Standard & Poor's: B-
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Distribution: | Rule 144A/Regulation S
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|
Fixed-rate notes
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Amount: | $500 million
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Maturity: | Dec. 1, 2011
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Coupon: | 8 5/8%
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Price: | Par
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Yield: | 8 5/8%
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Spread: | 396 bps
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Call features: | Callable on Dec. 1, 2009 at 104.313, 103.516, par on and after Dec. 1, 2011
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Equity clawback: | Until Dec. 1, 2009 for 35% at 108.625
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Price talk: | 8¾% area
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|
Floating-rate notes
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Amount: | $500 million
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Maturity: | Dec. 1, 2009
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Coupon: | Six-month Libor plus 375 bps
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Price: | 99.00
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Call: | Callable for life at par
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Price talk: | Libor plus 375 at 99.00
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