Deutsche Bank Adjusts GT Estimates

Deutsche Bank is adjusting its estimates for Goodyear Tire & Rubber Co. GT “to reflect its mandatory convertible preferred stock offering.” “Assuming the $65MM overallotment is exercised, total company proceeds will be $484MM,” Deutsche Bank writes. “We expect the company to use proceeds to reduce debt, generating interest savings in the range of $44MM annually. “The additional common shares to be issued will depend the market value of Goodyear's common stock at the time of conversion, but will range between 27.5MM and 34.4MM. We are adjusting our 2012 estimate to $2.05 from $2.10 to account for this dilution.” Goodyear Tire & Rubber closed Tuesday at $14.74.