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HIGH YIELD: Goodyear (GT Ba3/B+/BB-): Asset Sale

HIGH YIELD

Already priced in, in our view. Price is less than previous reports suggested.

  • Goodyear has announced the sale of its Off-the-Road asset to Yokohama Rubber for $905mn cash. The transaction is expected to close by early 2025.
  • Goodyear announced a strategic review in 4Q23 with Chemical and Dunlop also slated for sale targeting $2bn total proceeds.
  • News of talks on this asset emerged on 10th July, with a $1-1.5bn valuation suggested.
  • GT 2.75 08/28 jumped ~1.375pts on the announcement at the time and rallied further in subsequent days, currently trading at 239 OAS.

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