Garrett Motion Announces Successful Repricing of Term Loan
Garrett Motion (Nasdaq: GTX), a leading automotive technology provider, has successfully repriced its $690 million term loan due in 2032. The new interest rate will be SOFR plus 200 basis points per annum, representing a 25-basis point reduction from the previous rate.
The company, with a 70-year history in automotive innovation, specializes in turbocharging technology and is expanding into Zero Emission Vehicle solutions. The repricing reflects Garrett's strong financial profile and will reduce interest expenses, supporting continued investment in innovation and shareholder returns.
Garrett Motion (Nasdaq: GTX), un importante fornitore di tecnologie per il settore automobilistico, ha rinegoziato con successo il suo prestito a termine da 690 milioni di dollari con scadenza nel 2032. Il nuovo tasso di interesse sar脿 SOFR pi霉 200 punti base all'anno, con una riduzione di 25 punti base rispetto al tasso precedente.
L'azienda, con una storia di 70 anni nell'innovazione automobilistica, 猫 specializzata nella tecnologia di turbo e sta ampliando la sua offerta verso soluzioni per Veicoli a Emissioni Zero. La rinegoziazione riflette il solido profilo finanziario di Garrett e contribuir脿 a ridurre le spese per interessi, sostenendo gli investimenti continui in innovazione e i ritorni per gli azionisti.
Garrett Motion (Nasdaq: GTX), un proveedor l铆der en tecnolog铆a automotriz, ha logrado refinanciar con 茅xito su pr茅stamo a plazo de 690 millones de d贸lares con vencimiento en 2032. La nueva tasa de inter茅s ser谩 SOFR m谩s 200 puntos b谩sicos anuales, lo que representa una reducci贸n de 25 puntos b谩sicos respecto a la tasa anterior.
La compa帽铆a, con 70 a帽os de historia en innovaci贸n automotriz, se especializa en tecnolog铆a de turbocompresores y est谩 expandi茅ndose hacia soluciones para Veh铆culos de Emisi贸n Cero. La refinanciaci贸n refleja el s贸lido perfil financiero de Garrett y reducir谩 los gastos por intereses, apoyando la inversi贸n continua en innovaci贸n y el retorno a los accionistas.
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Garrett Motion (Nasdaq : GTX), un fournisseur de technologie automobile de premier plan, a r茅ussi 脿 ren茅gocier son pr锚t 脿 terme de 690 millions de dollars arrivant 脿 茅ch茅ance en 2032. Le nouveau taux d'int茅r锚t sera SOFR plus 200 points de base par an, ce qui repr茅sente une r茅duction de 25 points de base par rapport au taux pr茅c茅dent.
L'entreprise, forte de 70 ans d'innovation automobile, est sp茅cialis茅e dans la technologie de turbocompresseurs et s'茅tend d茅sormais aux solutions pour v茅hicules 脿 z茅ro 茅mission. Cette ren茅gociation refl猫te la solide situation financi猫re de Garrett et permettra de r茅duire les charges d'int茅r锚ts, soutenant ainsi les investissements continus en innovation et les retours aux actionnaires.
Garrett Motion (Nasdaq: GTX), ein f眉hrender Anbieter von Automobiltechnologie, hat erfolgreich die Neufestsetzung seines 690 Millionen US-Dollar Terminkredits mit F盲lligkeit im Jahr 2032 abgeschlossen. Der neue Zinssatz betr盲gt SOFR plus 200 Basispunkte pro Jahr, was eine Reduzierung um 25 Basispunkte gegen眉ber dem vorherigen Satz darstellt.
Das Unternehmen, das auf eine 70-j盲hrige Geschichte in der Automobilinnovation zur眉ckblickt, ist auf Turboladertechnologie spezialisiert und erweitert sein Angebot auf L枚sungen f眉r Fahrzeuge mit Null-Emissionen. Die Neufestsetzung spiegelt das starke finanzielle Profil von Garrett wider und wird die Zinskosten senken, wodurch kontinuierliche Investitionen in Innovationen und Renditen f眉r die Aktion盲re unterst眉tzt werden.
- Interest rate reduction of 25 basis points on $690 million term loan
- Improved financial flexibility and reduced interest expenses
- Strong lender confidence in company's long-term strategy
- Enhanced ability to invest in innovation and return capital to shareholders
- Substantial debt load with $690 million term loan extending until 2032
Insights
Garrett Motion's loan repricing reduces interest costs, strengthens financial flexibility, and supports future investment and shareholder returns.
Garrett Motion has successfully repriced its
The lower interest rate will directly improve Garrett's bottom line by reducing annual interest expenses. On a loan of this size, the
More significantly, this successful repricing signals strong lender confidence in Garrett's financial health and strategic direction. Lenders typically offer more favorable terms to companies they perceive as lower risk, suggesting the credit markets view Garrett's operational performance and industry position positively.
The timing is strategic amid the current interest rate environment. By securing this repricing now, Garrett has locked in improved terms that enhance their financial flexibility for ongoing operations, innovation investments, and shareholder returns through their capital allocation framework.
For investors, this development indicates management's proactive approach to capital structure optimization and financial discipline - important attributes in the cyclical automotive technology sector where maintaining strong liquidity positions through industry cycles is critical for long-term success.
PLYMOUTH, Mich. and ROLLE, Switzerland, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a leading differentiated automotive technology provider, today announced the successful repricing of its existing
Borrowings under the facility will bear interest at the Secured Overnight Financing Rate (SOFR) plus 200 basis points per annum, which represents a 25-basis point reduction from the existing facility.
鈥�We are pleased to have successfully completed the repricing of our term loan, which reflects the strength of our financial profile and the confidence lenders have in our long-term strategy,鈥� said Olivier Rabiller, President and CEO of Garrett. 鈥�This repricing will further decrease our interest expense and build on our liquidity position, allowing us to continue investing in innovation and returning capital to shareholders in line with our capital allocation framework.鈥�
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聽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 six R&D centers, 13 manufacturing sites 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 innovations. For more information, please visit聽.
Forward-Looking Statements
This communication and related comments by management may include 鈥渇orward-looking statements鈥� 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 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥済oal,鈥� 鈥渟eek,鈥� 鈥渂elieve,鈥� 鈥減roject,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟trategy,鈥� 鈥渇uture,鈥� 鈥渓ikely,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渨ill,鈥� and similar expressions. Forward-looking statements represent our current judgment about possible future activities, events, or developments that we expect may occur in the future. In making these statements, 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 the automotive industry, the competitive landscape and our ability to compete, and macroeconomic and geopolitical conditions, 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 statements, except where we are expressly required to do so by law.
Contacts:
INVESTOR RELATIONS
Cyril Grandjean
+1 734 392 55 04
MEDIA
Amanda Jones
+41 79 601 07 87
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