GOODYEAR ANNOUNCES EXPIRATION OF EXCHANGE OFFERS FOR ITS 5.000% SENIOR NOTES DUE 2029 AND ITS 5.250% SENIOR NOTES DUE 2031

Rhea-AI Summary

The Goodyear Tire & Rubber Company (NASDAQ: GT) announced the expiration of its exchange offers for unregistered Senior Notes due 2029 and 2031, as of April 27, 2022. A total of $844.6 million in 2029 notes and $599.9 million in 2031 notes were validly tendered. This represents 99.37% and 99.98% of the respective notes outstanding. Goodyear accepted all validly tendered notes and expects to issue registered exchange notes on April 28, 2022. The press release contains forward-looking statements regarding various operational risks.

Positive

• $844.6 million in 2029 notes and $599.9 million in 2031 notes were tendered, showing high participation.
• 99.37% and 99.98% of the respective notes were exchanged, indicating strong investor confidence.

Negative

• The reliance on forward-looking statements introduces uncertainty regarding future performance.
• Potential risks include supply chain disruptions, labor issues, and adverse economic conditions.

AKRON, Ohio, April 28, 2022 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) ("Goodyear") announced the expiration of the offers to exchange all of its outstanding unregistered 5.000% Senior Notes due 2029 (the "2029 Restricted Notes") and all of its outstanding unregistered 5.250% Senior Notes due 2031 (the "2031 Restricted Notes," and, together with its 2029 Restricted Notes, the "Restricted Notes") for equivalent principal amounts, respectively, of its 5.000% Senior Notes due 2029 (the "2029 Exchange Notes") and its 5.250% Senior Notes due 2031 (the "2031 Exchange Notes," and, together with its 2029 Exchange Notes, the "Exchange Notes") that are registered under the Securities Act of 1933, as amended (the "Securities Act").

The exchange offers expired at 5 p.m., New York City time, on April 27, 2022. 

Computershare Trust Company, N.A., the exchange agent for the exchange offers, has advised that $844,615,000 in aggregate principal amount of the 2029 Restricted Notes and $599,867,000 in aggregate principal amount of the 2031 Restricted Notes were validly tendered and not validly withdrawn prior to the expiration of the exchange offer, which represents 99.37% of the aggregate principal amount of the 2029 Restricted Notes and 99.98% of the aggregate principal amount of the 2031 Restricted Notes, in each case outstanding upon commencement of the exchange offer. Goodyear has accepted for exchange all of the Restricted Notes validly tendered and not validly withdrawn. Goodyear expects to issue the Exchange Notes in exchange for the Restricted Notes on or about April 28, 2022.

This press release is neither an offer to sell nor a solicitation of an offer to buy securities and no recommendation is made as to whether or not holders of Restricted Notes should have exchanged them. The exchange is being conducted pursuant to the terms of the prospectus and related letter of transmittal dated March 30, 2022, copies of which were provided to the holders of the Restricted Notes. 

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 achieve the expected benefits of the Cooper Tire & Rubber Company acquisition; the impact on us of the COVID-19 pandemic; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; changes in tariffs, trade agreements or trade restrictions; our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; work stoppages, financial difficulties, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; foreign currency translation and transaction risks; 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.

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SOURCE The Goodyear Tire & Rubber Company

FAQ

What was the expiration date of Goodyear's exchange offers for the Senior Notes?

The expiration date was April 27, 2022.

How much of the 2029 Restricted Notes were tendered in the exchange offer?

$844.6 million of the 2029 Restricted Notes were validly tendered.

What percentage of the 2031 Restricted Notes were exchanged by Goodyear?

99.98% of the 2031 Restricted Notes were exchanged.

When does Goodyear expect to issue the Exchange Notes?

Goodyear expects to issue the Exchange Notes on April 28, 2022.

What could affect Goodyear's future performance according to the press release?

Factors may include supply chain disruptions, inflation, and labor shortages.