Centerbridge Credit Partners Sells $62M in Garrett Motion Stock

Centerbridge Credit Partners Master, a major shareholder of Garrett Motion, has sold 5.1 million shares for $62.1 million. Garrett Motion recently announced a successful repricing of its $690 million term loan, reducing interest rates and enhancing liquidity. The company's Q2 earnings report revealed a 3% increase in net sales to $913 million, driven by favorable foreign currency impacts. Analysts have adjusted their price targets based on these favorable market conditions and currency exchange benefits. Garrett Motion's stock score is driven by strong technical indicators and a positive earnings call, but financial instability due to negative equity and high leverage poses risks.

Garrett Motion Inc. (GTX) has seen significant financial developments in recent weeks, including a substantial shareholder sale and a successful term loan repricing. These events highlight the company's efforts to enhance liquidity and manage interest expenses, while also providing insight into its financial health and strategic direction.

On August 8, 2025, Centerbridge Credit Partners Master, L.P., a major shareholder, sold 5.1 million shares of Garrett Motion, valued at $62.1 million [2]. This transaction comes amidst a period of positive financial news for the company, including the successful repricing of its $690 million term loan. The new loan terms will bear interest at the Secured Overnight Financing Rate (SOFR) plus 200 basis points per annum, representing a 25-basis point reduction from the existing facility [1]. This move is expected to decrease interest expenses and enhance liquidity, supporting Garrett Motion's continued investment in innovation and shareholder returns.

Garrett Motion's Q2 earnings report, released on July 24, 2025, revealed a 3% increase in net sales to $913 million, driven by favorable foreign currency impacts [3]. The company's earnings per share (EPS) reached $0.42, surpassing estimates of $0.36, while net income rose to $87 million from $64 million a year ago. Despite a modest revenue increase, the bottom-line improvements were significant, with adjusted EBIT rising to $124 million and adjusted free cash flow increasing to $121 million.

Analysts have adjusted their price targets based on these favorable market conditions and currency exchange benefits [2]. TipRanks' AI Analyst, Spark, rates GTX as Neutral, driven by strong technical indicators and a positive earnings call. However, the stock's financial instability due to negative equity and high leverage poses risks [2].

Garrett Motion's strategic focus on zero-emission technologies and its competitive edge in the automotive sector continue to drive its financial performance. The company's mission to enable the transportation industry to advance motion through unique, differentiated innovations remains a key driver of its growth and success.

References:
[1] https://www.nasdaq.com/press-release/garrett-motion-announces-successful-repricing-term-loan-2025-08-06
[2] https://www.tipranks.com/news/insider-trading/major-shareholder-sells-millions-in-garrett-motion-stock-insider-trading
[3] https://www.aol.com/finance/garrett-motion-posts-q2-revenue-171448662.html