The document announces that Stephanie Streeter, former chairman, president and CEO of Banta Corporation, has been elected to Goodyear's board of directors. Streeter has over 20 years of experience in marketing and business leadership roles. She will receive standard compensation for non-employee directors. The document also notes amendments made to some of Goodyear's employee benefit plans and compensation agreements to comply with tax code requirements.
This document is a Form 8-K filing by The Goodyear Tire & Rubber Company with the Securities and Exchange Commission regarding an earnings press release and investor presentation on August 15, 2007. The filing announces Goodyear's plans to use proceeds from the sale of its Engineered Products business and a recent equity offering to fund major global investments in new and existing tire factories, repay $300 million in debt, and achieve over $125 million in annual interest expense savings through additional debt repayments. It also provides an update on the company's $1.8-2 billion cost savings plan, of which nearly $750 million has been achieved through June 30, 2007.
1) Goodyear amended and restated the definitive agreements for its pan-European accounts receivable securitization facility, increasing the maximum funding from €275 million to €450 million. 2) The facility involves the daily sale of accounts receivable from several Goodyear European subsidiaries to a bankruptcy-remote French company, which purchases the receivables with commercial paper borrowings and a set-off against security deposits. 3) The facility expires no later than July 30, 2015 and is subject to customary representations, warranties, covenants and events of default, including a financial covenant regarding Goodyear Dunlop Tire Europe's leverage ratio.
Goodyear drew $600 million from its $1.5 billion revolving credit facility due to temporary delays accessing $360 million invested with Reserve Primary Fund. The funds will support seasonal working capital needs and enhance cash liquidity. Interest on the borrowing is at a rate of 125 basis points over LIBOR (currently 4.68%). Goodyear had previously announced its intent to draw on the credit facility in a September 25th press release.