Garrett Motion Announces Term Loan and Revolving Credit Facility Refinancing and Extension
Garrett Motion (Nasdaq: GTX) has successfully completed a major refinancing operation, including a refinancing of its $692 million term loan and an upsize of its revolving credit facility from $600 million to $630 million. The new facilities will initially bear interest at SOFR plus 225 basis points annually, representing a 50-basis point reduction from existing facilities.
The term loan maturity has been extended by approximately four years to 2032, while the revolving credit facility maturity has been extended by about two years to 2030. According to CEO Olivier Rabiller, this refinancing significantly reduces interest expenses and extends debt maturity profile, reflecting market confidence in Garrett's credit profile and free cash flow generation capabilities.
Garrett Motion (Nasdaq: GTX) ha completato con successo una significativa operazione di rifinanziamento, che include il rifinanziamento del suo prestito a termine di 692 milioni di dollari e un aumento della sua linea di credito revolving da 600 milioni a 630 milioni di dollari. Le nuove strutture porteranno inizialmente un tasso di interesse pari a SOFR più 225 punti base all'anno, rappresentando una riduzione di 50 punti base rispetto alle strutture esistenti.
La scadenza del prestito a termine è stata estesa di circa quattro anni fino al 2032, mentre la scadenza della linea di credito revolving è stata estesa di circa due anni fino al 2030. Secondo il CEO Olivier Rabiller, questo rifinanziamento riduce significativamente le spese per interessi e allunga il profilo di scadenza del debito, riflettendo la fiducia del mercato nel profilo di credito di Garrett e nelle sue capacità di generazione di flusso di cassa libero.
Garrett Motion (Nasdaq: GTX) ha completado con éxito una importante operación de refinanciamiento, que incluye el refinanciamiento de su préstamo a plazo de 692 millones de dólares y un aumento de su línea de crédito rotativo de 600 millones a 630 millones de dólares. Las nuevas facilidades llevarán inicialmente un interés de SOFR más 225 puntos básicos anuales, lo que representa una reducción de 50 puntos básicos respecto a las facilidades existentes.
El vencimiento del préstamo a plazo se ha extendido en aproximadamente cuatro años hasta 2032, mientras que el vencimiento de la línea de crédito rotativo se ha extendido en aproximadamente dos años hasta 2030. Según el CEO Olivier Rabiller, este refinanciamiento reduce significativamente los gastos por intereses y extiende el perfil de vencimiento de la deuda, reflejando la confianza del mercado en el perfil crediticio de Garrett y en su capacidad de generación de flujo de caja libre.
가렛 모션 (Nasdaq: GTX)은 6억 9,200만 달러에 달하는 상당한 재정거래 작업을 성공적으로 완료했습니다. 이에는 6억 달러의 만기 대출을 재정거래하고 6억 달러 규모의 회전 신용 한도를 6억 3천만 달러로 증액하는 것이 포함됩니다. 새로운 대출은 당초 SOFR에 연간 225베이시스 포인트를 더한 이자를 청구하며, 이는 기존 대출보다 50베이시스 포인트 감소한 것입니다.
만기 대출의 만기는 약 4년 연장되어 2032년까지 연장되었고, 회전 신용 한도의 만기는 약 2년 연장되어 2030년까지 연장되었습니다. CEO 올리비에 라빌레르에 따르면, 이번 재정거래는 이자 비용을 크게 줄이고 부채 만기 프로필을 확장하여 가렛의 신용 프로필과 자유 현금 창출 능력에 대한 시장의 신뢰를 반영합니다.
Garrett Motion (Nasdaq: GTX) a réussi à effectuer une opération de refinancement majeure, comprenant le refinancement de son prêt à terme de 692 millions de dollars et une augmentation de sa ligne de crédit renouvelable de 600 millions à 630 millions de dollars. Les nouvelles facilités porteront initialement un intérêt de SOFR plus 225 points de base par an, représentant une réduction de 50 points de base par rapport aux facilités existantes.
La maturité du prêt à terme a été prolongée d'environ quatre ans jusqu'en 2032, tandis que la maturité de la ligne de crédit renouvelable a été prolongée d'environ deux ans jusqu'en 2030. Selon le PDG Olivier Rabiller, ce refinancement réduit considérablement les charges d'intérêts et prolonge le profil de maturité de la dette, reflétant la confiance du marché dans le profil de crédit de Garrett et sa capacité à générer des flux de trésorerie disponibles.
Garrett Motion (Nasdaq: GTX) hat erfolgreich eine bedeutende Refinanzierungsaktion abgeschlossen, die eine Refinanzierung seines 692 Millionen US-Dollar-Kreditnehmers und eine Erhöhung seiner revolvierenden Kreditfazilität von 600 Millionen auf 630 Millionen US-Dollar umfasst. Die neuen Kreditfazilitäten werden zunächst mit einem Zinssatz von SOFR zuzüglich 225 Basispunkten jährlich belastet, was einer Reduzierung um 50 Basispunkte gegenüber den bestehenden Kreditfazilitäten entspricht.
Die Fälligkeit des Darlehens wurde um etwa vier Jahre bis 2032 verlängert, während die Fälligkeit der revolvierenden Kreditfazilität um etwa zwei Jahre bis 2030 verlängert wurde. Laut CEO Olivier Rabiller senkt diese Refinanzierung die Zinsausgaben erheblich und verlängert den Fälligkeitshorizont der Schulden, was das Vertrauen des Marktes in das Kreditprofil von Garrett und die Fähigkeit zur Generierung von freien Cashflows widerspiegelt.
- Reduced interest rate by 50 basis points on both facilities
- Revolving credit facility increased from $600M to $630M
- Term loan maturity extended by 4 years to 2032
- Revolving credit facility maturity extended by 2 years to 2030
- Maintains substantial debt load of over $1.3B between facilities
Insights
Garrett Motion's successful refinancing package represents a strategic financial optimization that will generate significant value for shareholders. The 50-basis point reduction in interest rates on the combined
The timing of this refinancing is particularly advantageous, executed amid expectations of potential rate cuts in 2025. The extended maturities to 2032 for the term loan and 2030 for the revolving facility provide important runway for the company's strategic initiatives, particularly in emerging technologies like fuel cell compressors and electric propulsion systems.
The upsizing of the revolving credit facility by
Notable aspects of this refinancing include:
- Improved debt maturity profile reducing refinancing risk through 2030-2032
- Enhanced liquidity position supporting R&D investments in zero-emission technologies
- Strengthened financial foundation for potential strategic acquisitions or organic growth initiatives
- Reduced interest burden improving profitability metrics and shareholder returns
This refinancing, coupled with the strategic note issuance from May 2024, positions Garrett Motion with one of the most robust balance sheets in its peer group, providing significant competitive advantages as the automotive technology landscape evolves.
PLYMOUTH, Mich. and ROLLE, Switzerland, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading differentiated automotive technology provider, today announced that it has successfully refinanced its existing
“We are pleased to have successfully completed this refinancing, which significantly reduces our interest expense and extends our debt maturity profile,” said Garrett President and CEO, Olivier Rabiller. “The strong market demand for our offering reflects confidence in Garrett’s robust credit profile and proven ability to generate industry-leading free cash flow. With this refinancing and our strategic note issuance last May, we have strengthened our financial position, giving us greater flexibility to invest in innovation, expand our portfolio, and deliver long-term value to our shareholders.”
About Garrett Motion Inc.
A differentiated technology leader, Garrett Motion has a 70-year history of innovation in the automotive sector (cars, trucks) and beyond (off-highway equipment, marine, power generators). Its expertise in turbocharging has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Garrett is expanding its positive impact by developing differentiated technology solutions for Zero Emission Vehicles, such as fuel cell compressors for hydrogen fuel cell vehicles, as well as electric propulsion and thermal management systems for battery electric vehicles. Garrett has five R&D centers, 13 manufacturing facilities and a team of more than 9,000 employees in more than 20 countries. Its mission is to enable the transportation industry to advance motion through unique, differentiated innovation. For more information, please visit www.garrettmotion.com.
Forward-Looking Statements
This press release and related comments by management include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and can be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “seek,” “should,” “strategy,” and similar expressions. Forward-looking statements represent our current judgment about possible future activities, events, or developments that we anticipate will or may occur in the future, and relate to, among other things, our cost structure and cash generation abilities, and plans and expectations regarding our capital structure and indebtedness. In making these statement, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future performance, events, or results, and actual performance, events, or results may differ materially from those envisaged by our forward-looking statements due to a variety of important factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission, including risks related to our ability to continue generating strong cash flows, among others. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statement, except where we are expressly required to do so by law.
Contacts:
INVESTOR RELATIONS
Cyril Grandjean
+1 734 392 55 04
investorrelations@garrettmotion.com
MEDIA
Amanda Jones
+41 79 601 07 87
Amanda.jones@garrettmotion.com
FAQ
What are the new interest rates for GTX's refinanced facilities?
How much did Garrett Motion (GTX) increase its revolving credit facility?
When will GTX's new term loan and revolving credit facility mature?
How much did GTX reduce its interest rate in the January 2025 refinancing?
