ROLLE, Switzerland - Garrett Motion Inc. (NASDAQ:GTX), an automotive technology company, announced today its intention to offer $500 million in senior unsecured notes due 2032. The offering is contingent on market conditions and other factors.
The notes, which are not registered under the Securities Act of 1933, will be guaranteed by Garrett Motion and its wholly owned restricted subsidiaries that also guarantee the company's senior secured credit facilities. The proceeds from the offering are earmarked for repaying approximately $500 million of term loan debt under the company's senior secured credit facilities, as well as covering related fees and expenses.
This private offering targets qualified institutional buyers, relying on Rule 144A, and certain non-U.S. persons in offshore transactions, pursuant to Regulation S under the Securities Act. The notes will not be offered or sold to U.S. persons without registration or an exemption from registration requirements.
Garrett Motion, with a history spanning over 70 years, is recognized for its leadership in turbocharging technology and its development of technologies aimed at reducing vehicle emissions. The company's portfolio includes turbochargers, electric turbos, and electric compressors for internal combustion engines and hybrid powertrains, as well as fuel cell compressors for hydrogen fuel cell vehicles and systems for battery electric vehicles.
Garrett Motion operates five R&D centers and 13 manufacturing sites globally, employing more than 9,300 people.
The announcement of the notes offering is based on a press release statement.
InvestingPro Insights
As Garrett Motion Inc. (NASDAQ:GTX) looks to strengthen its financial position through the offering of senior unsecured notes, investors are paying close attention to the company's performance metrics and future prospects. According to InvestingPro data, Garrett Motion's market capitalization stands at a robust $2.14 billion, reflecting investor confidence in its market presence and growth potential.
Investors are also considering the company's price-to-earnings (P/E) ratio, which at 325.17, suggests a high earnings multiple. This is further confirmed by the adjusted P/E ratio for the last twelve months as of Q1 2024, which is 357.44. While this may raise questions about valuation, it's important to note that the company has been profitable over the last twelve months, and management has been actively buying back shares, signaling confidence in the company's value and future.
An InvestingPro Tip that aligns with the company's current financial strategy is the expectation that net income will grow this year, which could be a critical factor for investors considering the purchase of the newly announced senior unsecured notes. Moreover, analysts predict that the company will remain profitable this year, adding another layer of potential assurance for investors.
For those interested in diving deeper into Garrett Motion's financials and strategic insights, there are additional InvestingPro Tips available, including analysis on the company's dividend policy and recent stock performance. To explore these further, visit InvestingPro, and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.