Goodyear launches $500 million senior notes offering

AKRON, Ohio - The Goodyear Tire & Rubber Company (NASDAQ: GT) announced today the commencement of a public offering of $500 million aggregate principal amount of 5-year senior notes. These notes, which are unsecured obligations of the company, will be issued subject to market and other customary closing conditions.

The proceeds from this offering, along with existing cash, are earmarked to fully redeem the company’s outstanding 5.000% Senior Notes due in 2026, of which $900 million is currently outstanding. A partial redemption of $400 million of these notes is scheduled for June 30, 2025, funded by the proceeds from the recent disposition of the Dunlop brand. Despite the debt refinancing efforts, InvestingPro analysis shows the company maintains a current ratio of 1.22, indicating adequate short-term liquidity. Subscribers to InvestingPro can access 7 additional key insights about Goodyear’s financial health and future prospects.

A consortium of banks, including Deutsche Bank Securities Inc., BofA Securities, Inc., and J.P. Morgan Securities LLC, among others, are managing the book-running for the offering. Additional financial institutions are serving as senior and co-managers.

This offering is part of Goodyear’s broader financial strategy and follows the shelf registration statement filed with the U.S. Securities and Exchange Commission that became automatically effective on May 29, 2025.

Goodyear, recognized as one of the world’s largest tire manufacturers with a market capitalization of $3.3 billion, employs approximately 68,000 individuals and has production facilities in 20 countries. The company also operates two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, focusing on advanced product and service development. The stock has shown strong momentum with a 28.33% year-to-date return, though InvestingPro’s comprehensive analysis indicates the stock is currently fairly valued. For detailed insights and expert analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

The release includes forward-looking statements under the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, cautioning that various factors could cause actual results to differ from those projected.

It is important to note that this news release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful without proper registration or qualification under the securities laws of that jurisdiction.

This article is based on a press release statement from The Goodyear Tire & Rubber Company.

In other recent news, The Goodyear Tire & Rubber Company has announced the redemption of $400 million in senior notes due in 2026, with the redemption price set at 100% of the principal plus accrued interest. This move is part of Goodyear’s ongoing efforts to manage its debt. Additionally, Goodyear has completed the sale of its off-the-road tire business to The Yokohama Rubber Company for approximately $905 million. The company has also agreed to sell most of its chemical division to Gemspring Capital Management for $650 million, a transaction expected to close by late 2025, pending regulatory approvals.

Moody’s Ratings has affirmed Goodyear’s corporate family rating at B1 and revised the outlook from negative to stable, reflecting improvements in the company’s operating income margin and reduced financial leverage. In analyst updates, JPMorgan has upgraded Goodyear’s stock to Overweight with a target price of $17, citing improved execution and debt reduction efforts. Meanwhile, BNP Paribas Exane has maintained a Neutral rating with a target price of $11, noting the potential financial impact of Goodyear’s recent chemical business sale.

Goodyear’s strategic moves, including the sale of non-core assets and a focus on operational efficiency, are part of the Goodyear Forward transformation plan. The company is expected to use proceeds from these sales to further reduce debt and invest in initiatives to enhance shareholder value. These developments indicate a concerted effort by Goodyear to strengthen its financial position and optimize its business portfolio.

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