Mié, May 8th 2024
Amidst a slight downturn in Q1 2024 financials, Garrett Motion Inc. boosts its senior notes offering to $800 million, focusing on financial restructuring.
Garrett Motion Inc., an automotive technology, recently announced an escalated offering of $800 million in 7.750% senior unsecured notes due 2032 reclama un comunicado de prensa, an increase from the planned $500 million. This strategic financial manoeuvre aligns with its first-quarter financial results, where the company saw a decrease in net sales and net income, indicating a strategic pivot to strengthen its financial base and investor confidence.
In Q1 2024, Garrett reported net sales of $915 million, a 6% decline from the previous year, attributed to softer demand across various vehicle segments and pricing pressures reports Garrett Motion. Despite these challenges, the company achieved a gross profit of $172 million and an adjusted EBITDA of $151 million. These figures underscore Garrett’s resilience in navigating market volatilities through strategic adjustments and cost-efficiency measures.
The substantial increase in the notes offering is designed to enhance liquidity, with the proceeds aimed at repaying existing debts totalling approximately $800 million. This move is part of a broader strategy to optimise Garrett’s capital structure and ensure long-term financial health.
President and CEO Olivier Rabiller highlighted, “This robust execution allowed us to again return value to shareholders and execute on our capital allocation priorities.”
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