Garrett Motion Inc. (NASDAQ: GTX) has successfully repriced its existing $690 million term loan due in 2032. The borrowings under the facility will now bear interest at the secured overnight financing rate (SOFR) plus 200 basis points per annum, representing a 25-basis point reduction from the previous rate.
Olivier Rabiller, the President and CEO of Garrett, expressed satisfaction with the successful repricing, highlighting that it reflects the strength of the company's financial profile and the confidence lenders have in its long-term strategy. He also noted that the repricing will lead to a further decrease in interest expense and contribute to building on Garrett's liquidity position, enabling continued investment in innovation and the return of capital to shareholders in line with the company's capital allocation framework.
Garrett Motion Inc., a differentiated technology leader with a 70-year history of innovation in the automotive sector and beyond, has emphasized its expertise in turbocharging, which has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Furthermore, the company is expanding its impact by developing differentiated technology solutions for zero-emission vehicles, including fuel cell compressors for hydrogen fuel cell vehicles, electric propulsion, and thermal management systems for battery electric vehicles. Garrett operates six R&D centers, 13 manufacturing sites, and has a team of more than 9,000 employees in over 20 countries. The market has reacted to these announcements by moving the company's shares -1.26% to a price of $12.57. For the full picture, make sure to review Garrett Motion's 8-K report.
