Garrett Motion Refinances and Extends Credit Facilities

Garrett Motion Inc. (NYSE: GTX) recently entered into a significant financial agreement, as per a Form 8-K filing with the Securities and Exchange Commission on January 30, 2025. The company finalized a Restatement Agreement, amending its Credit Agreement dated back to April 30, 2021. This Restatement Agreement involves the refinancing of all existing term and revolving loans under the previous credit agreement.

In detail, the Restatement Agreement resulted in the refinance of all existing term loans with new term loans totaling $691,762,500. These new term loans mature on January 30, 2032, and bear interest rates at the Company’s discretion. Additionally, all previous revolving loans were refinanced, and existing commitments terminated, being replaced by new revolving commitments of $630,000,000 maturing on January 30, 2030.

The new Credit Facilities have been secured on a first-priority basis by a variety of assets and equity interests of the company’s subsidiaries, providing a strengthened financial position. The Credit Agreement involves customary covenants for such financing and outlines specific events of default.

Under a separate financial covenant, the New Revolving Facility necessitates the maintenance of a consolidated total leverage ratio not exceeding 4.7 to 1.00 following each quarter if certain conditions are met. These adjustments aim to optimize the company’s financial stability and performance.

In response to this fundamental agreement, Garrett Motion also released a press statement which highlighted the successful refinancing of its term loan and the extension of its revolving credit facility. The refinancing activities have allowed for a reduction in interest expenses, extended debt maturities, and an overall enhancement of the company’s financial profile.

Garrett Motion Inc., a renowned automotive technology provider with a focus on turbocharging and innovative solutions for cleaner and more efficient vehicles, is dedicated to advancing motion through distinctive technologies. With a global presence and a commitment to sustainable transportation solutions, the company continues to drive innovation in the automotive sector.

The completion of this Refinancing Agreement signifies a strategic move by Garrett to bolster its financial standing and pave the way for future growth and value creation for its stakeholders, solidifying its position in the automotive technology industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Garrett Motion’s 8K filing here.

Garrett Motion Company Profile

Garrett Motion Inc, together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications.