Garrett Motion to launch $1.65 billion credit facilities next week

By Sara Rosenberg

New York, Aug. 30 – Garrett Motion Inc. is set to hold a bank meeting in London on Monday and in New York on Wednesday to launch $1.65 billion equivalent of credit facilities (Ba3/BB-), according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

The facilities consist of a $500 million revolver, a $400 million equivalent euro term loan A and a $750 million equivalent U.S. and euro seven-year term loan B, the source said.

The U.S. term loan B, sized at minimum $300 million, is talked at Libor plus 275 basis points to 300 bps with a 0% Libor floor and an original issue discount of 99.5, and the euro term loan B, sized at minimum $300 million equivalent, is talked in the Euribor plus 300 bps area with a 0% floor and a discount of 99.5, the source continued.

Included in the term loan B debt is 101 soft call protection for six months.

Commitments are due at noon ET on Sept. 20, the source added.

Proceeds will be used to help fund the spin-off of the company from Honeywell International Inc.

Other funds for the transaction will come from $510 million equivalent senior notes.

Garrett is a Switzerland-based manufacturer of turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers and the aftermarket.

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