Garrett Motion Prepays $50M, Cuts Interest Rate on $635M Term Loan by 25bps
Garrett Motion reduced its $635 million term loan due 2032 by 25 basis points to SOFR plus 175 basis points and executed a $50 million early repayment. These moves will lower interest expense and bolster the company’s liquidity position.
1. Loan Repricing and Early Repayment
Garrett Motion repriced its existing $635 million term loan due 2032, lowering the interest rate by 25 basis points to SOFR plus 175 basis points. The company also made a $50 million early repayment on the facility, demonstrating lender confidence in its strategy.
2. Financial Impact and Strategy
The reduced rate and partial payoff will decrease annual interest costs and improve cash flow flexibility. Management highlighted that the actions strengthen the balance sheet and provide additional liquidity to support ongoing investment in turbocharging and electrification technologies.