GTX - Garrett Motion accelerates and expands preferred stock redemptions

Garrett Motion announces that it will accelerate and expand its Series B preferred stock redemptions, which Garrett anticipates will result in $411 million in debt reduction by the end of Q1 2022. "Our strong financial performance driven by demand across Garrett’s portfolio of products and services has generated solid cash flow, enabling us to normalize our capital structure, deleverage the balance sheet and return capital to shareholders,” said CEO Olivier Rabiller. Garrett Motion will accelerate the first $211M partial Series B preferred stock redemption up to December 28, 2021. In addition, Garrett plans to partially redeem additional shares of Series B preferred stock in Q1 2022 for a corresponding cash payment of $200M. The present value of Series B preferred stock reflects a 7.25% discount rate on the remaining scheduled payments, was approximately $585M on June 30, 2021 and is estimated to be $207M following both redemptions. Shares are up 1.59% pre-market.

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Garrett Motion accelerates and expands preferred stock redemptions