Australian Bond Exchange (ABE)’s latest offering is a high-yielding Australian dollar denominated note over Goodyear Tire & Rubber Company.
NASDAQ-listed Goodyear develops, manufactures, and sells tires for cars, trucks, buses, aircraft, and earthmoving and mining and industrial equipment, as well as distributing chemicals and natural rubber products in 48 facilities in 21 countries. The company earned $US17.5 billion in revenue in 2021.
The A$10 million issue is a 4.50%pa fixed rate 5-year senior unsecured note maturing in March 2027. Coupons will be paid in September and March. The bond is issued in AUD eliminating foreign exchange rate exposure. Goodyear is using the proceeds of the bond for general corporate purposes. The company is rated by credit rating agency, Moodys as sub investment grade B2, implying high perceived credit risk.
The bond will be available to both retail and wholesale investors on the IRESS, Xplan and Australian Money Market platforms to facilitate secondary trading.
ABE says that as a leading global consumer discretionary company, the Goodyear bond can play a useful role introducing sector diversification to Australian investors’ portfolios.
The exchange’s recent offerings have included a 5.50%pa senior unsecured unsubordinated note linked to a shipping and trade finance fund from TradeFlow Capital Management, and a 4.50%pa note over Xerox Corporation.
ABE Managing Director and Chief Executive Officer Bradley McCosker says the exchange, which listed in December last year, continues to build a sustainable pipeline of new debt issues for 2022.
The exchange reported a 198% increase in Australian private investor revenue in its first half results for the 2022 financial year.
