The Goodyear Tire&Rubber Co.'s Proposed $700 Million Senior Unsecured Notes Rated 'BB' (Recovery Rating: '4')

NEW YORK (S&P Global Ratings) March 2, 2017--S&P Global Ratings today assigned its 'BB' issue-level rating and '4' recovery rating to Akron, Ohio-based The Goodyear Tire&Rubber Co.'s proposed $700 million senior unsecured notes. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; rounded estimate: 45%) in the event of a payment default. Goodyear will use the net proceeds from this offering, which it estimates will be about $690 million, to fully redeem its 7% senior notes due 2022 at a redemption price equal to 103.5% of the principal, plus accrued and unpaid interest up to the redemption date. Before the notes are redeemed, the company may temporarily use all or some of the

...NEW YORK (S&P Global Ratings) March 2, 2017--S&P Global Ratings today assigned its '##' issue-level rating and '4' recovery rating to Akron, Ohio-based The Goodyear Tire & Rubber Co.'s proposed $700 million senior unsecured notes. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; rounded estimate: 45%) in the event of a payment default. Goodyear will use the net proceeds from this offering, which it estimates will be about $690 million, to fully redeem its 7% senior notes due 2022 at a redemption price equal to 103.5% of the principal, plus accrued and unpaid interest up to the redemption date. Before the notes are redeemed, the company may temporarily use all or some of the net proceeds to repay the borrowings under its revolving credit facilities. The proposed notes are senior unsecured obligations of Goodyear and its guarantors, ranking equal in right of payment with the company's existing and future unsubordinated debt. The notes...

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