The Goodyear Tire&Rubber Co.'s Proposed $900 Million Senior Unsecured Notes Rated 'BB' (Recovery Rating: '4')

NEW YORK (S&P Global Ratings) May 10, 2016--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 $900 million senior unsecured notes. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; upper half of the range) in the event of a payment default. Goodyear will use the net proceeds from this offering, which it estimates will be about $887 million, to fully redeem its 6.5% senior notes due 2021 at a redemption price equal to 104.875% of the principal, plus accrued and unpaid interest up to the redemption date. The proposed notes are senior unsecured obligations of Goodyear and its guarantors, ranking

...NEW YORK (S&P Global Ratings) May 10, 2016--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 $900 million senior unsecured notes. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; upper half of the range) in the event of a payment default. Goodyear will use the net proceeds from this offering, which it estimates will be about $887 million, to fully redeem its 6.5% senior notes due 2021 at a redemption price equal to 104.875% of the principal, plus accrued and unpaid interest up to the redemption date. 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 will also be effectively subordinated to all of the company and its subsidiary guarantors' existing and future secured debt to the extent of the collateral...

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