- Automotive tech provider Garrett Motion Inc (NASDAQ:GTX) has entered into definitive agreements with shareholders Centerbridge Partners L.P. and Oaktree Capital Management L.P. for capital structure simplification.
- Under the agreement, all outstanding Series A preferred stock will be converted into a single class of common stock on or about July 3, 2023.
- The elimination of the Series A Preferred dividend will add over $100 million of incremental annual net cash flow to support investments.
- The company has agreed to repurchase approximately $280 million of Series A Preferred Stock from Centerbridge and $290 million of Series A Preferred Stock from Oaktree for a total of $570 million, reducing Centerbridge’s ownership from 22% to 15% and Oaktree’s ownership from 23% to 15%, each on an as-converted basis.
- Garrett has also announced an increase in the company’s share repurchase authorization to $250 million.
- In addition, Centerbridge and Oaktree will reduce their governance rights and lock up their remaining shares while remaining largest shareholders and maintaining one board seat each.
- Price Action: GTX shares are trading lower by 3.27% at $7.98 in premarket on the last check Thursday.
What’s Going On With Femasys Stock?
Femasys Inc. (NASDAQ: FEMY) shares are up more than 14% on Monday and have gained more than 900% over the last five days. Here's a look at what's going on:
