Garrett Motion converts remaining series A preferred stock

By William Gullotti

Buffalo, N.Y., June 13 – Garrett Motion Inc. converted all of its outstanding series A cumulative convertible preferred stock into common stock after the market close on Monday, according to an 8-K filing with the Securities and Exchange Commission.

Roughly 247.77 million shares of the series A preferred convertibles were issued as part of the company’s financial restructuring on April 30, 2021.

As previously reported on April 27, about $280 million of the convertibles were repurchased from Centerbridge Partners LP, with roughly another $290 million repurchased from Oaktree Capital Management LP, using proceeds from its amended $700 million term loan B.

After the market close on June 12, trading for the series A preferred convertibles was suspended, and all outstanding shares were subsequently converted to common stock on a one-to-one basis.

Additionally, on or prior to June 20, holders of converted shares will receive a payment of accrued and unpaid dividends through June 30, plus an additional amount that represents the dividends that would have accrued through Sept. 30. The additional payment per share 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), subject to adjustment to avoid the issuance of fractional shares.

As a result of these transactions, Garrett enhanced its cash flow profile with the elimination of the 11% dividend of the series A convertible preferreds and expects to have a total of 266,014,442 shares of common stock outstanding.

“We are pleased we have achieved this important milestone to benefit all our shareholders, providing more financial flexibility to Garrett as it invests for the future in both its core emission reduction turbo business as well as in new differentiated technologies for zero emission mobility,” remarked Olivier Rabiller, Garrett’s president and chief executive officer, in an attached press release.

“It will also enable the company to engage more effectively with the investment community with greater liquidity and a normalized capital structure.”

Rolle, Switzerland-based Garrett Motion is a provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.