Garrett Motion Inc. 8-K

What Happened

• Garrett Motion Inc. (GTX) filed an 8-K on May 20, 2026 disclosing Amendment No. 2 (dated May 18, 2026) to its Amended and Restated Credit Agreement. The Second Amendment reduces the interest rates on the company’s U.S. Dollar term loan facility and resets certain repricing protections. The filing also notes creation/adjustment of a direct financial obligation related to the amended facility and furnishes materials for a Technology and Investor Day held May 20, 2026.

Key Details

• Applicable Rate for U.S. Dollar term loan facility reduced to:
  • 1.75% for Term Benchmark Loans
  • 0.75% for ABR (Alternate Base Rate) Loans
• Soft-call protection for certain repricing transactions set at 1.00% for six months following the Second Amendment’s effective date (May 18, 2026).
• Item 2.03: the amendment results in a creation/adjustment of a direct financial obligation as described under Item 1.01.
• Company furnished Investor Day presentation as Exhibit 99.2 and the Second Amendment as Exhibit 10.1 to the 8-K.

Why It Matters

• Lowered interest spreads reduce Garrett Motion’s borrowing costs on the U.S. Dollar term loan, which can improve cash flow and reduce interest expense versus prior rates.
• The six-month soft-call reset limits the ability of lenders to impose certain repricing penalties during that period, providing short-term refinancing flexibility.
• Investors should note the amendment modifies material terms of the company’s credit facility (a key financing arrangement); the filing does not disclose new principal amounts or other changes beyond those stated.