| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Garrett Motion Inc. > News item |
Garrett Motion amends series B preferreds held by Honeywell
Chicago, Oct. 1 – Garrett Motion Inc. has been working with Honeywell International Inc. to amend and restate the certificate of designations of the series B preferred stock that was issued to an affiliate of Honeywell when the company emerged from bankruptcy, according to a press release.
As of June 30, the present value on the series B preferred stock was $585 million and will be approximately $613 million on Jan. 1, 2022.
The present value reflects a 7.25% discount rate on the remaining scheduled payments.
Honeywell had the right to require Garrett to repurchase all of the series B shares because Garrett’s consolidated trailing 12-month adjusted EBITDA exceeded $600 million for two consecutive fiscal quarters.
The series B holders have agreed to defer that right until Dec. 31, 2022.
In connection with the amendment, Garrett will partially redeem the series B shares before the end of the first quarter in 2022, resulting in a cash payment of approximately $213 million as of Jan. 1, 2022.
After the payment, the present value of the remaining scheduled redemption payments on the series B preferred shares will be $400 million.
All other terms and conditions remain unchanged, including the scheduled redemption payment by Garrett of $34.8 million due April 30, 2022.
Additionally, Honeywell designated Tina Pierce, vice president and chief financial officer of Honeywell’s performance materials and technologies segment, to replace Darius Adamczyk on Garrett’s board of directors now that Garrett has completed its Chapter 11 restructuring and implemented its new capital structure.
Rolle, Switzerland-based Garrett Motion is a provider of passenger vehicle, commercial vehicle, aftermarket replacement and performance enhancement solutions.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.