Garrett Motion Inc. (NASDAQ: GTX) has announced a proposed secondary public offering of 17,000,000 shares of the company’s common stock. This offering is being made by certain entities managed by affiliates of Oaktree Capital Management, L.P., Centerbridge Partners, L.P., and Cyrus Capital Partners, L.P. The underwriters will also have the option to purchase an additional 2,550,000 shares of common stock from the selling stockholders.
Concurrently, Garrett has authorized the purchase of approximately 2 million shares of common stock as part of the secondary public offering, subject to a maximum aggregate repurchase amount of $25 million. This repurchase is part of the company’s existing $250 million share repurchase program.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as the lead bookrunners and representatives of the underwriters for the proposed offering, with several other firms acting as joint bookrunning managers.
It is important to note that the company will not receive any proceeds from the proposed offering, as the selling stockholders will receive all of the net proceeds. Additionally, the underwriters will not receive any compensation for the shares being repurchased by the company pursuant to the repurchase.
A shelf registration statement relating to these securities has been filed with the Securities and Exchange Commission (SEC) and is effective. Interested parties are encouraged to read the shelf registration statement, preliminary prospectus supplement, and other documents filed with the SEC for more information about Garrett and the offering.
Today the company's shares have moved -0.42% to a price of $11.90. For the full picture, make sure to review Garrett Motion's 8-K report.
