Goodyear Tire & Rubber Company Amends and Restates First Lien Revolving Credit Facility

The Goodyear Tire & Rubber Company, a leading tire manufacturer, has amended and restated its U.S. first lien revolving credit facility, extending its maturity from 2026 to 2030. This move provides the company with increased financial flexibility and stability. The amended facility has a borrowing base of $2.75 billion, with up to $800 million in letters of credit and $50 million of swingline loans available for issuance. The company's obligations under the facility are guaranteed by most of its wholly owned U.S. and Canadian subsidiaries.

Key Takeaways:

• The Goodyear Tire & Rubber Company has amended and restated its U.S. first lien revolving credit facility, extending its maturity from 2026 to 2030.
• The amended facility has a borrowing base of $2.75 billion, with up to $800 million in letters of credit and $50 million of swingline loans available for issuance.
• The company's obligations under the facility are guaranteed by most of its wholly owned U.S. and Canadian subsidiaries.
• The facility has a principal change, with the interest rate remaining at SOFR plus 125 basis points.
• The lender group under the facility has a significant exposure, with up to $250 million of commitments available for increase.
• The company's ability to incur debt, pay dividends, and make certain other restricted payments or investments is limited by covenants in the amended facility.
• The facility has customary representations and warranties, including a condition to borrowing that all such representations and warranties are true and correct in all material respects.
• The occurrence of an event of default will result in any outstanding obligations under the facility being immediately due and payable.

Statistics:

• Borrowing base: $2.75 billion
• Letters of credit available: up to $800 million
• Swingline loans available: up to $50 million
• Interest rate: SOFR plus 125 basis points
• Alternative base rate: prime rate, federal funds effective rate, or overnight bank funding rate plus 50 basis points
• Undrawn amounts under the facility subject to annual commitment fee: 25 basis points

Sources:

• UNITED STATES SECURITIES AND EXCHANGE COMMISSION, "Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934", May 19, 2025.