Garrett Motion announces partial repayment and successful repricing of Term Loan
Garrett Motion (Nasdaq: GTX) announced a successful repricing and $50 million early repayment of its $635 million term loan due 2032.
Rhea-AI Summary
Garrett Motion (Nasdaq: GTX) announced a successful repricing and $50 million early repayment of its $635 million term loan due 2032. Interest on the facility will now be SOFR plus 175 basis points, a 25-basis point reduction. According to Garrett, this is expected to lower interest expense and support liquidity.
Positive
- Early repayment of $50 million on $635 million term loan due 2032
- Interest margin reduced to SOFR + 175 bps, a 25-bp spread reduction
- Company expects lower interest expense from repriced term loan
- Management states the transaction supports strong liquidity position
Negative
- None.
Details
News Market Reaction – GTX
In the May 18 session, GTX declined 1.94%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- Early loan repayment
- $50M
- Early repayment of existing term loan
- Term loan balance
- $635M
- Existing term loan due 2032
- Loan interest spread
- SOFR + 175 bps
- New pricing on term loan facility
- Spread reduction
- 25 basis points
- Reduction from prior term loan rate
- Company history
- 70 years
- History of innovation in automotive sector
- R&D centers
- 6
- Global research and development centers
- Manufacturing facilities
- 13
- Global manufacturing footprint
- Employees
- more than 8,700
- Global workforce across more than 20 countries
Historical Context
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Strong Q1 results, higher outlook, dividend and buybacks drove a sharp gain.
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Oil-free compressor collaboration for BESS cooling showed efficiency gains and growth potential.
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Announcement of timing and access details for Q1 2026 results call.
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Launch of oil-free compressor portfolio highlighting efficiency and new applications.
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Planned Technology and Investor Day outlining strategy and long-term framework.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
secured overnight financing rate financial
basis points financial
fuel cell compressors technical
thermal management systems technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
PLYMOUTH, Mich. and ROLLE, Switzerland, May 18, 2026 (GLOBE NEWSWIRE) -- Garrett Motion Inc. (Nasdaq: GTX) ("Garrett" or the "Company"), a global leader in differentiated turbocharging and electrification technologies for mobility and industrial applications, today announced the successful repricing and a
Borrowings under the facility will bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 175 basis points per annum, which represents a 25-basis point reduction from the existing facility.
“We are pleased to have completed the repricing of our term loan, reflecting the strength of our financial profile and lender confidence in our long-term strategy,” said Olivier Rabiller, President and CEO of Garrett. “The repricing will further reduce interest expense and strengthen liquidity.”
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 well-recognized expertise in turbocharging has enabled significant reductions in engine size, fuel consumption, and CO2 emissions. Garrett is committed to advancing turbo applications while leveraging its unique technology solutions, such as fuel cell compressors for hydrogen fuel cell vehicles, as well as electric propulsion and thermal management systems for automotive and industrial applications. Garrett has six R&D centers, 13 manufacturing facilities, and a team of more than 8,700 employees in more than 20 countries. For more information, please visit www.garrettmotion.com.
Forward-Looking Statements
This communication and related comments by management may 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,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” 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 (the “SEC”), 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 | MEDIA |
| Cyril Grandjean | Fabrice Spenninck |
| +1 734 392 55 04 | |
| investorrelations@garrettmotion.com | MediaRelations@garrettmotion.com |
FAQ
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