GTX - Garrett Motion converts series A preferred stock into common stock

2023-06-13 07:39:43 ET

• Garrett Motion ( NASDAQ: GTX ) announces conversion of the Company’s Series A Preferred Stock into a single class of Common Stock, effective after the close of market on June 12, 2023. The company to have a total of ~266,014,442 shares of Common Stock outstanding after the conversion.
• Additionally, on or prior to June 20, 2023, all holders of the preferred stock will receive a payment of the accrued and unpaid dividends through June 30, 2023, plus an additional amount that would have accrued on the preferred stock through September 30, 2023. The additional payment per preferred stock will be comprised of $0.144375 in cash, and approximately 0.104379 shares of Common Stock (representing $0.853509 in accrued and unpaid dividends per share of Common Stock, valued at $8.177 per share),
• The conversion would lead to one class of shares outstanding, the common stock. However, interest expense saved from preferred stock will be partially offset by the incremental interest expense from the $700M of new debt incurred in connection with the Company’s previously announced capital transformation transactions, which included the repurchase of approximately $570 million of shares of Series A Preferred Stock held by certain funds affiliated with Centerbridge Partners, L.P. and certain funds affiliated with Oaktree Capital Management, L.P., and today’s conversion of the Series A Preferred Stock.
• Source: Press Release

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