Garrett Motion Inc. (NASDAQ:GTX, GTXAP))))), a leading differentiated automotive technology provider, today announced that it has entered into definitive agreements (the “Agreements”) with Centerbridge Partners, L.P. (“Centerbridge”) and funds managed by Oaktree Capital Management, L.P. (“Oaktree”) to simplify the Company’s capital structure by converting all outstanding Series A Preferred Stock into a single class of Common Stock, on or about July 3, 2023, subject to certain conditions. The agreements contemplate the repurchase of approximately $285 million of Series A Preferred Stock from each of Centerbridge and Oaktree at a market-based price, without premium, and provide for a reduction in governance rights, as well as lock-up and other agreements.
Series A Preferred Stock amended to automatically convert into Common Stock on or about July 3, 2023
Conversion would result in a single class of Common Stock with greater liquidity and a multi-billion dollar equity market capitalization
Eliminates 11% Series A Preferred dividend, providing over $100 million in annual net cash flow benefits
Repurchase of $570 million of Series A Preferred Shares from Centerbridge and Oaktree
Board authorizes increase in general stock buyback program to $250 million
Centerbridge and Oaktree will reduce their governance rights and lock up their remaining shares, while remaining the company’s largest shareholders and maintaining one board seat each
