Garrett reports no significant near-term maturities, aims to de-lever

By Devika Patel

Knoxville, Tenn., May 7 – Garrett Motion Inc. plans to use its cash to de-lever.

“We remain focused on utilizing our cash generation to deleverage our balance sheet,” senior vice president and chief financial officer Alessandro Gili said Tuesday on the company’s earnings conference call for the first quarter ended March 31.

“[The] key target is to deleverage.”

The company has no significant debt maturities in the near future, he said.

Adjusted EBITDA was $159 million for the quarter.

As of March 31, Garrett had about $689 million in available liquidity, including $207 million in cash and cash equivalents and $483 million available under its revolving credit facility.

Net debt was $1.39 billion as of March 31, compared to $1.43 billion as of Dec. 31.

The company's net debt to consolidated EBITDA leverage ratio was 3x as of March 31, compared to 2.96x as of Dec. 31.

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

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