Good Year calls senior notes worth $350 mn for redemption

AKRON(Commodity Online) : The Goodyear Tire & Rubber Company has called $350 million of its outstanding 10.500% senior notes due 2016 for redemption on May 27, 2011. Goodyear intends to use net proceeds from its recent mandatory convertible preferred stock offering to fund the redemption.
The redemption will result in savings to annualized interest expense of approximately $40 million, of which about $23 million will be realized in 2011.
The redemption price is 110.500% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to May 27, 2011. The redemption is pursuant to provisions of the notes that allow the company, at its option, to redeem up to 35 percent of the original principal amount of the notes with proceeds from one or more equity offerings.
Goodyear is one of the world’s largest tyre companies. It employs approximately 72,000 people and manufactures its products in 55 facilities in 22 countries around the world.

(Source: http://www.commodityonline.com/commodity-stocks/Good-Year-calls-senior-notes-worth-$350-mn-for-redemption-2011-04-28-38542-3-1.html)