AsiaNet 85682

NEW YORK, Sept. 21, 2020 /PRNewswire=KYODO JBN/ --

- KPS TO PARTICIPATE IN COMPANY'S DIP FINANCING TO SUPPORT OPERATIONS

- KPS HAS OBTAINED COMMITTED EXIT FINANCING

KPS Capital Partners, LP ("KPS") announced today that, through a newly formed

affiliate, it has entered into a stock and asset purchase agreement with

Garrett Motion Inc. (NYSE: GTX) ("Garrett" or the "Company"), under which KPS

will acquire substantially all of the assets of Garrett for approximately $2.1

billion.  

Logo - https://mma.prnewswire.com/media/1023167/KPS_Logo.jpg

Garrett will file a motion with the United States Bankruptcy Court for the

Southern District of New York today seeking the designation of KPS as the

"stalking horse bidder" in a bidding procedures motion in connection with the

Company's filing of voluntary petitions under Chapter 11 of the Bankruptcy

Code.  KPS was selected by Garrett after a comprehensive review of strategic

alternatives by the Company's Board of Directors.  To facilitate the sale

process, Garrett has begun a process in the United States to financially

restructure through a voluntary Chapter 11 proceeding.  The completion of the

sale is subject to court approval, among other customary conditions.  KPS

currently expects the sale process to be completed in early 2021.

KPS, through an affiliate, has also agreed to participate in Garrett's Debtor

in Possession ("DIP") financing to support the Company's operations.  Following

court approval, the DIP facility will ensure that Garrett has sufficient

liquidity to continue normal operations and continue to meet its financial

obligations during the Chapter 11 process, including the timely payment of

employee wages and benefits, continued servicing of customer orders and

shipments, and other obligations.

A syndicate of banks including Citi, UBS Investment Bank, Credit Suisse and BNP

PARIBAS, have committed to provide exit financing to the KPS stalking horse

acquisition vehicle to acquire Garrett.  The exit financing is subject to

completion of the acquisition and customary closing conditions.

Raquel Vargas Palmer, Managing Partner of KPS, said, "We proceed with great

conviction and enthusiasm to acquire Garrett, a global leader in turbocharger

and electrification technologies, serving nearly every major automotive and

commercial vehicle OEM in the world.  Garrett enjoys a leading market position,

scale, world class research and development sites, and state-of-the-art

manufacturing and engineering facilities strategically located around the

globe.  We look forward to working with the Company's leadership team and

employees to accelerate its many attractive growth opportunities as well as

increase its already substantial investment in research and development,

technology and new product development.

"KPS has invested an enormous amount of effort, resources and capital to

acquire Garrett. We are committed to the expeditious acquisition of Garrett to

provide certainty of outcome and confidence in the new Company's future for all

of its stakeholders, including customers, employees and suppliers.  The Company

and its stakeholders will benefit from KPS' demonstrated track record and

decades long history of successfully investing in the automotive and

transportation industries globally, commitment to manufacturing excellence,

continuous improvement and access to our significant financial resources.  The

new Garrett will be conservatively capitalized and not encumbered by its

predecessor's significant liabilities."  

UBS Investment Bank and Credit Suisse are acting as financial advisors, and

Davis Polk & Wardwell LLP is acting as legal counsel to KPS with respect to the

transaction.

About Garrett Motion Inc.

Garrett, headquartered in Rolle, Switzerland, is a differentiated technology

leader, serving customers worldwide for more than 65 years with passenger

vehicle, commercial vehicle, aftermarket replacement and performance

enhancement solutions. Garrett's cutting-edge technology enables vehicles to

become safer, and more connected, efficient and environmentally friendly. Our

portfolio of turbocharging, electric boosting and automotive software solutions

empowers the transportation industry to redefine and further advance motion.  

For additional information, please visit www.garrettmotion.com

About KPS Capital Partners, LP

KPS, through its affiliated management entities, is the manager of the KPS

Special Situations Funds, a family of investment funds with over $11.5 billion

of assets under management (as of June 30, 2020).  For over two decades, the

Partners of KPS have worked exclusively to realize significant capital

appreciation by making controlling equity investments in manufacturing and

industrial companies across a diverse array of industries, including basic

materials, branded consumer, healthcare and luxury products, automotive parts,

capital equipment and general manufacturing.  KPS creates value for its

investors by working constructively with talented management teams to make

businesses better, and generates investment returns by structurally improving

the strategic position, competitiveness and profitability of its portfolio

companies, rather than primarily relying on financial leverage. The KPS Funds'

portfolio companies have aggregate annual revenues of approximately $7.7

billion, operate 146 manufacturing facilities in 26 countries, and have

approximately 26,000 employees, directly and through joint ventures worldwide.

The KPS investment strategy and portfolio companies are described in detail at

www.kpsfund.com.

SOURCE  KPS Capital Partners, LP

CONTACT: Business Inquiries: KPS, 212.338.5100; Media Relations: Prosek

Partners, David Wells or Catherine Johnson, 646.818.9287