Garrett Motion Converts Series A Preferred Stock Into Common Stock
13 Giugno 2023 - 1:00PM
Garrett Motion Inc. (Nasdaq: GTX), a
differentiated technology leader for the automotive industry,
announced today the conversion of the Company’s Series A Preferred
Stock into a single class of Common Stock, simplifying the
Company’s capital structure and setting the stage for greater
market capitalization, enhanced liquidity, a path to index
inclusion, and a more diversified shareholder base.
“We are pleased we have achieved this important
milestone to benefit all our shareholders, providing more financial
flexibility to Garrett as it invests for the future in both its
core emission reduction turbo business as well as in new
differentiated technologies for zero emission mobility,” said
Olivier Rabiller, President and CEO. “It will also enable the
Company to engage more effectively with the investment community
with greater liquidity and a normalized capital structure.”
Effective after the close of market on June 12,
2023, trading of the Series A Preferred Stock on Nasdaq was
suspended, and each holder of shares of Series A Preferred Stock as
of the conversion was deemed to hold one share of Garrett’s Common
Stock (Nasdaq: GTX) for each share of Series A Preferred Stock
previously held. All shares of Series A Preferred Stock will be
converted in accordance with the customary procedures of the
Company’s transfer agent, for shares held in registered form, and
of the Depository Trust Company, for shares held in street name.
Additionally, on or prior to June 20, 2023, all holders of the
Series A Preferred Stock as of the conversion will receive, in
respect of each share of Series A Preferred Stock held immediately
prior to the conversion, a payment of the accrued and unpaid
dividends on the Series A Preferred Stock through June 30,
2023, plus an additional amount that represents the dividends
that would have accrued on the Series A Preferred Stock through
September 30, 2023. In the aggregate, this additional payment
per share of Series A Preferred Stock will be comprised of
$0.144375 in cash, and approximately 0.104379 shares of Common
Stock (representing $0.853509 in accrued and unpaid dividends per
share of Common Stock, valued at $8.177 per share), subject to
adjustment to avoid the issuance of fractional shares of Common
Stock.
As a result of the conversion, Garrett will have
one class of shares outstanding, the Common Stock, and an enhanced
cash flow profile from the elimination of the 11% Series A
Preferred Stock dividend. This is partially offset by the
incremental interest expense from the Company’s $700 million of new
debt incurred in connection with the Company’s previously announced
capital transformation transactions, which included the repurchase
of approximately $570 million of shares of Series A Preferred Stock
held by certain funds affiliated with Centerbridge Partners, L.P.
and certain funds affiliated with Oaktree Capital Management, L.P.,
and today’s conversion of the Series A Preferred Stock. As a result
of these transactions, Garrett expects to have a total of
approximately 266,014,442 shares of Common Stock outstanding.
Garrett previously announced that it has also increased its
share repurchase authorization to $250 million.
About Garrett Motion Inc.
Garrett Motion is a differentiated technology leader, serving
customers worldwide for more than 65 years with passenger vehicle,
commercial vehicle, aftermarket replacement and performance
enhancement solutions. Garrett’s cutting-edge technology enables
vehicles to become cleaner, more efficient and connected. Our
portfolio of turbocharging, electric boosting and automotive
software solutions empowers the transportation industry to redefine
and further advance motion. For more information, please visit
www.garrettmotion.com.
Contacts: |
|
|
MEDIA |
|
INVESTOR RELATIONS |
Maria Santiago Enchandi |
|
Eric Birge |
1.734.386.6593 |
|
1.734.228.9529 |
Maria.SantiagoEnchandi@garrettmotion.com |
|
Eric.Birge@garrettmotion.com |
Grafico Azioni Garrett Motion (NASDAQ:GTXAP)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Garrett Motion (NASDAQ:GTXAP)
Storico
Da Lug 2023 a Lug 2024