AKRON, Ohio, Feb. 28, 2012 /PRNewswire/ — The Goodyear Tire & Rubber Company (NYSE: GT) today called for redemption on March 29, 2012 all of its outstanding $650 million 10.5% senior unsecured notes due 2016.

The redemption price will be the present value at the redemption date of (i) 107.875 percent of the principal amount being redeemed, plus (ii) the amount of the interest payment scheduled for May 15, 2012 less accrued and unpaid interest to March 29, 2012, computed using a discount rate equal to the yield of a comparable U.S. Treasury security plus 0.50 percent. In addition, holders will receive accrued and unpaid interest to March 29, 2012.

Goodyear intends to use the net proceeds from its $700 million offering of 7.0% senior notes due 2022, which closed today, together with current cash and cash equivalents, for the redemption.

The transactions will result in interest expense savings of approximately $25 million in 2013. Goodyear continues to expect interest expense to range between $360 million and $385 million for 2012.

Goodyear is one of the world’s largest tire companies. It employs approximately 73,000 people and manufactures its products in 53 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry.

Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to realize anticipated savings and operational benefits from our cost reduction initiatives or to implement successfully other strategic initiatives; increases in the prices paid for raw materials and energy; pension plan funding obligations; actions and initiatives taken by both current and potential competitors; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; a labor strike, work stoppage or other similar event; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

SOURCE The Goodyear Tire & Rubber Company