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Garrett Motion draws remaining $100 under DIP credit agreement
By Sarah Lizee
Olympia, Wash., Oct. 28 – Garrett Motion Inc. borrowed a $100 million delayed-draw loan under its debtor-in-possession credit agreement on Monday, according to an 8-K filing with the Securities and Exchange Commission.
The borrowing was available after the company received final approval for the DIP credit agreement on Oct. 23 from the U.S. Bankruptcy Court for the Southern District of New York.
Following Monday’s draw, the company has $200 million of loans outstanding under the DIP credit agreement and no remaining unfunded commitments.
Citigroup Global Markets Inc. is the lead arranger and administrative agent.
The loan will mature on March 31, 2021, subject to three separate one-month extensions. There is a 50 basis point extension fee for each extension, as previously reported.
The loan will bear interest at Libor plus 450 bps, subject to a 1% Libor floor. If the maturity date has been extended after March 31, 2021, interest will be Libor plus 550 bps, still subject to a 1% Libor floor.
On the closing date, the company paid 1% in commitment fees on the total commitment, plus 2% in fees in the form of original issue discount on the initial commitment, and on the delayed-draw borrowing date, the company will pay 2% in the form of original issue discount on the delayed-draw loans.
Upon an event of default, all outstanding amounts under the DIP credit agreement will bear interest at a rate equal to the applicable interest rate, plus an additional 2% per annum and be payable on demand.
Rolle, Switzerland-based Garrett Motion is a provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions. The company filed for Chapter 11 bankruptcy on Sept. 20 under case number 20-12212.
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