Garrett Motion updates U.S. and euro term loan B sizes and pricing

By Sara Rosenberg

New York, Sept. 20 – Garrett Motion Inc. set its seven-year U.S. term loan B size at $425 million and its seven-year euro term loan B size at €375 million, increasing the total term loan B amount from $750 million equivalent at launch, according to a market source.

Also, pricing on the U.S. term loan B was reduced to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps and pricing on the euro term loan B was cut to Euribor plus 275 bps from the Euribor plus 300 bps area, the source said.

As before, both term loans have a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

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

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 notes, which were downsized with the term loan B upsizing.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.