Garrett firms pricing on $1.25 billion U.S. and euro term loan

By Sara Rosenberg

New York, March 4 – Garrett Motion Inc. finalized pricing on its $1.25 billion equivalent U.S. and euro term loan, according to a market source.

The U.S. term loan firmed at Libor plus 325 basis points, the high end of the Libor plus 300 bps to 325 bps talk, and the euro term loan was set at Euribor plus 350 bps, the high end of the Euribor plus 325 bps to 350 bps talk, the source said.

As before, the U.S. term loan has a 0.5% Libor floor and an original issue discount of 99.5, and the euro loan has a 0% floor and a discount of 99.5.

The company’s $1.55 billion equivalent credit facilities (Ba2) also include a $300 million five-year revolver.

JPMorgan Chase Bank is the lead bank on the deal.

Proceeds will be used for exit financing.

Garrett Motion is a Rolle, Switzerland-based provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions. The company filed for Chapter 11 bankruptcy on Sept. 20, 2020 under case number 20-12212.

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