Goodyear reduces interest expense in refinancing

Akron, Ohio - Goodyear has refinanced three credit facilities, reducing its interest expenses by $15 million to $20 million a year and extending maturities, said the company.

Goodyear last month said it would refinance the facilities of $1500 million, $1200 million and €505 million.

The tyre maker reduced the interest rate of the $1500 mbillion facility by 50 to 75 basis points; the $1200 million facility by 100 basis points with another 25 basis points reduced based on Goodyear´s credit ratings; and the €505 million facility by 75 basis points.

"This refinancing action reduces our interest expense, creates additional operational flexibility, extends maturities and helps address our efforts to improve Goodyear´s balance sheet," said Richard Kramer, president of North American Tire and chief financial officer.

From Rubber & Plastics News (A Crain publication)