Garrett Motion gets court OK to access $100 million of DIP financing

By Sarah Lizee

Olympia, Wash., Oct. 7 – Garrett Motion Inc. obtained approval to access $100 million of a proposed $250 million debtor-in-possession senior secured super-priority term loan, according to an interim order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, a syndicate of banks arranged by Citigroup and including UBS Investment Bank, Credit Suisse and BNP Paribas have committed to provide exit financing to a stalking horse acquisition vehicle to acquire Garrett.

The DIP facility is priced at Libor plus 350 basis points, subject to a 1% Libor floor, with an original issue discount of 99.5 bps.

The loan will mature in six months, with an option for a three-month extension. The extension is subject to a 50 bps fee.

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 is 20-12212.

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