- Garrett Motion (GTX, Financial) announces a secondary offering of 17 million shares with a 30-day option for underwriters to buy an additional 2.55 million shares.
- The company plans a concurrent repurchase of approximately 2 million shares up to $25 million as part of its existing $250 million share repurchase program.
- Goldman Sachs and J.P. Morgan are leading the offering with several financial institutions as joint bookrunners.
Garrett Motion Inc. (GTX), a distinguished player in automotive technology, has launched a secondary public offering of 17 million shares currently held by its major stockholders, including Oaktree Capital Management, Centerbridge Partners, and Cyrus Capital Partners. The underwriters have a 30-day window to purchase an additional 2.55 million shares should they choose to exercise this option. This move marks a significant ownership transition, offering existing major shareholders an exit strategy.
Concurrently, Garrett Motion is set to repurchase about 2 million shares, capped at $25 million, utilizing its current $250 million share repurchase program. This strategic buyback signifies the company's robust financial health and confidence in its future valuation. Notably, Garrett will not receive any proceeds from the secondary offering; all financial returns will go to the selling stockholders.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC headline the list of underwriters as lead bookrunners, with other noteworthy financial institutions, including Deutsche Bank Securities and Wells Fargo Securities, participating as joint bookrunning managers. Their involvement underscores substantial market confidence in the offering.
This dual approach, involving both a secondary offering and a share repurchase, aims to manage potential negative impacts on share price due to increased market availability. It also effectively reshuffles Garrett's shareholder base while continuing to return value to its investors.
