Goodyear Redeems $350 Million in Senior Notes

AKRON, OH--May 27, 2011: The Goodyear Tire & Rubber Company has completed its previously announced redemption of $350 million in senior notes due 2016.

Following its successful mandatory convertible preferred stock offering in March, Goodyear exercised its right to redeem $350 million in aggregate principal amount of its outstanding 10.500% senior notes due 2016.  The redemption price was 110.500% of the principal amount of the notes redeemed, plus accrued and unpaid interest to, but excluding, May 27, 2011.  

The redemption will result in savings to annualized interest expense of approximately $40 million, of which about $23 million will be realized in 2011.

Goodyear is one of the world's largest tire companies. It employs approximately 72,000 people and manufactures its products in 55 facilities in 22 countries around the world.