Daily News: April 20, 2012

JPMorgan Chase Agents Goodyear’s U.S. $3.2B Refinancing

Goodyear announced it has completed a refinancing of its principal U.S. credit facilities. Significant changes to the amended and restated agreements include:

  • The company’s existing $1.5 billion asset-based revolving credit facility was increased to $2 billion and its maturity was extended to 2017. Loans under this facility will initially bear interest at LIBOR plus 150 basis points.

  • The company’s existing $1.2 billion second lien term loan was extended to 2019. The loan will bear interest at LIBOR plus 375 basis points, subject to a LIBOR floor of 100 basis points. The amended and restated second lien term loan was issued with an original issue discount of 200 basis points.

    According to a regulatory filing dated one-year ago (4/20/11), Goodyear noted that JPMorgan Chase was the administrative agent under its amended and restated first lien and second lien credit facilities.

    “These financing actions position the company to continue to implement its Strategy Roadmap,” said Darren R. Wells, executive vice president and chief financial officer. “We see this refinancing as a proactive step to improve our financial position, leaving us with no term debt repayments required until 2019.”

    Goodyear Tire & Rubber is one of the world’s largest tire companies. It employs approximately 73,000 people and manufactures its products in 53 facilities in 22 countries around the world.