Goodyear continues to make progress on its integration of Cooper Tire & Rubber Co., while confirming the recent departure of an executive who had led the integration process.
It remains unclear how Goodyear plans to position its new brands into the market with its Goodyear, Dunlop and Kelly brands. The company recently ceased production of Cooper's Dick Cepek brand, melding it into the Mickey Thompson brand.
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Goodyear prices debt associated with Cooper deal
The Goodyear blimp Wingfoot One in flight over the company s Akron headquarters.
AKRON–Additional details are emerging on nearly $1.5 billion in new debt Goodyear is taking on to help buy Cooper Tire & Rubber Co.
Goodyear, based in Akron, said May 14 it will pay 5 percent annual interest on $850 million in senior notes due in 2029 and 5.25 percent annual interest on another $600 million of senior notes due in 2031.
The debt offering is expected to close on May 18.
Goodyear is using this $1.45 billion private offering, along with cash on hand as well as money available through its existing revolving credit to cover the cash portion of its $2.5 billion acquisition of Cooper. The debt is unsecured.
Goodyear gains momentum as markets recover
Goodyear gains momentum as markets recover
DAVID MANLEY/TIRE BUSINESS
Goodyear chairman, CEO and president Rich Kramer
Akron-based Goodyear Tire & Rubber Co. (Nasdaq: GT) believes it is on solid footing for the second quarter after experiencing strong aftermarket growth to start the year and despite the continuing impact of the pandemic and looming price increases.
Among the reasons for optimism: Replacement sales are blooming, commercial sales are strong, demand for Goodyear.com is rising, and Walmart Inc. s auto service locations are returning to service. As the markets recover, we re feeling a level of momentum we haven t felt in some time, said Rich Kramer, Goodyear chairman, president and CEO. We have a strong lineup of products. Following action to further improve our distribution, our ability to reach customers has never been better.