Garrett Motion withdraws FY20 guidance, taps revolving credit facility

Garrett Motion (GTX +8.7%) says that the company fully drew the remaining funds available under its revolving credit facility of ~$470M to increase its financial flexibility in the current environment.

Total liquidity (including a draw down on the revolver in Q1) available at the start of the Q2 is ~$655M. There are no significant debt maturities before Sept. 2023.

GTX continues to adjust production schedules based on fluctuating market conditions, particularly in North America and Europe, and implement aggressive cost control measures and cash management actions, including: Postponing capital expenditures, Optimizing working capital requirements, Temporarily reducing pay for the leadership team and all executive officers by 20%, Flexing the organizational cost, Reducing temporary workforce and contract service workers and Restricting external hiring.

Garrett is withdrawing its FY20 guidance issued on February 27, 2020.

Press Release


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