US: Goodyear earmarks share offer proceeds
The Goodyear Tyre & Rubber Company on Friday said underwriters of its public offering of 22,727,272 shares of its common stock have exercised in full the over-allotment option granted to them by the company.
As a result, the company will sell an additional 3,409,091 shares of its common stock at the offering price of $US33.00 per share. The offering, including the exercise of the over-allotment option, is expected to close on 22 May.
Including the exercise of the over-allotment option, the net proceeds from the offering, after deducting underwriting discounts and commissions, are expected to be approximately $834m.
Goodyear intends to use the net proceeds from the offering to redeem approximately $175m in principal amount of its outstanding 8.625% senior notes due in 2011 and approximately $140m in principal amount of its outstanding 9.00% senior notes due in 2015.
The company expects to use the remaining net proceeds of the offering for general corporate purposes, which may include investments in growth initiatives within the company's core tyre businesses and the repayment of additional debt.