Garrett Motion finalizes U.S. and euro term loan tranche sizes

By Sara Rosenberg

New York, March 8 – Garrett Motion Inc. set its U.S. seven-year term loan B size at $715 million and its euro seven-year term loan B size at €450 million, according to a market source.

Pricing on the U.S. term loan is Libor plus 325 basis points with a 0.5% Libor floor and an original issue discount of 99.5, and pricing on the euro term loan is Euribor plus 350 bps with a 0% floor and a discount of 99.5.

Previously in syndication, pricing on the U.S. term loan firmed at the high end of the Libor plus 300 bps to 325 bps talk, and pricing on the euro term loan was set at the high end of the Euribor plus 325 bps to 350 bps talk.

The company’s 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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