Garrett Motion to repurchase $570M preferred stock, convert remaining to common, and boost buyback program

Garrett Motion Inc.

Agreed to repurchase ~$570M of Series A Preferred from Centerbridge ($280M) and Oaktree ($290M) at $8.10/share, subject to VWAP adjustment.
All remaining Series A Preferred will convert into common stock at 1:1 on or after July 3, 2023, pending conditions.
Company plans $700M debt financing via an amended credit agreement to fund the repurchases.
Board increases share repurchase program to $250M (from prior amount); program expires Nov 15, 2023.
Centerbridge and Oaktree agree to reduce board designation rights to one designee each and adhere to lock-up and ownership limitations.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Garrett Motion Inc. entered into Transaction Agreements with Centerbridge Partners, L.P. and funds managed by Oaktree Capital Management, L.P. valued at approximately $570 million (effective 2023-04-12).

Action: entry
Counterparty: Centerbridge Partners, L.P. and funds managed by Oaktree Capital Management, L.P.
Value: approximately $570 million
Effective: 2023-04-12

Exact text from the filing

On April 12, 2023, Garrett Motion Inc. (the “Company”) announced that it has entered into separate transaction agreements with each of Centerbridge Partners, L.P. (together with its affiliates, “Centerbridge”) and funds managed by Oaktree Capital Management, L.P. (together with its affiliates, “Oaktree”) to effect a series of integrated transactions

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Garrett Motion Inc. filing history →

Source: SEC EDGAR

accession 0000950142-23-001084

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