Goodyear to make public offering

Akron, Ohio - Goodyear said it will make a public offering of more than 22.5 million shares, from which it hopes to net $725 million to pay down debt and to use for other purposes.

The company also said it plans to grant the underwriters a 30-day option to buy up to an additional 3.38 million shares to cover any over-allotments.

Goodyear based the net proceeds amount-after deducting underwriting discounts and commissions-on the $33.26 per share price for its common stock on May 8. The estimated net proceeds would be about $834 million if underwriters exercise their over-allotment option in full.

The tyre maker said it intends to use the net proceeds to repay approximately $175 million of its 8.625 percent notes due in 2011, and about $140 million of its 9 percent notes due in 2015. The remaining money would go to general corporate purposes-possibly as investment in its core tire businesses-and to repay other debt.

Deutsche Bank Securities, Citi and Goldman, Sachs & Co. will be joint book running managers for the offering, Goodyear said.

From Tire Business (A Crain publication)

Press release from Goodyear