Goodyear Announces Offering Of Senior Notes In Connection With Planned Cooper Tire Acquisition

Rhea-AI Summary

Goodyear Tire & Rubber Company (NASDAQ: GT) has launched a private offering of $1.45 billion in senior notes with 8- and 10-year terms to fund the acquisition of Cooper Tire & Rubber Company. The notes will be senior unsecured obligations and are subject to market conditions. Proceeds will also cover related acquisition fees and expenses. The offering is restricted to qualified institutional buyers and is not registered under the Securities Act. Forward-looking statements indicate risks, including the impact of COVID-19 and the acquisition's successful completion.

Positive

• Private offering of $1.45 billion in senior notes to fund Cooper Tire acquisition.
• Acquisition expected to enhance market position and revenue potential.

Negative

• Increased debt load could strain financial resources and impact cash flows.
• Acquisition risks include integration challenges and market conditions.

AKRON, Ohio, May 13, 2021 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) today announced that it has commenced a private offering to eligible purchasers of $1.45 billion aggregate principal amount of 8- and 10-year senior notes. The notes will be senior unsecured obligations of the company. Issuance and sale of the notes is subject to market and other customary closing conditions.

Goodyear intends to use the net proceeds from this offering, together with cash on hand and borrowings under its revolving credit facility, to fund the cash portion of the consideration for the acquisition of Cooper Tire & Rubber Company and to pay fees and expenses in connection with such acquisition and the other transactions related thereto.

The notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.  Goodyear plans to offer and issue the notes only to qualified institutional buyers pursuant to Rule 144A and to persons outside the United States pursuant to Regulation S, in each case under the Securities Act. 

This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. GT-FN

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: the impact on us of the COVID-19 pandemic; our success in completing our pending acquisition of Cooper Tire & Rubber Company and our ability to achieve the expected benefits of such acquisition; our ability to pay or refinance our debts or take other actions as a result of incurring significant additional indebtedness in connection with the acquisition; 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; increases in the prices paid for raw materials and energy; a labor strike, work stoppage or other similar event; foreign currency translation and transaction risks; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; 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 is Goodyear's recent offering amount related to acquisition?

Goodyear has announced a private offering of $1.45 billion in senior notes.

How will Goodyear use the proceeds from the senior notes?

The proceeds will be used to fund the cash portion of the Cooper Tire acquisition and cover related fees.

What are the terms of Goodyear's senior notes offering?

The offering includes 8- and 10-year senior unsecured notes.

What risks does Goodyear face with the Cooper Tire acquisition?

Risks include increased debt, integration challenges, and external market conditions.