MORRIS PLAINS, N.J.,
Sept. 14, 2018 /PRNewswire/ --
Honeywell International Inc. ("Honeywell") (NYSE: HON)
announced that, in connection with the previously announced
spin-off (the "Spin-Off") of Garrett Motion Inc. ("Garrett") from
Honeywell, Garrett LX I S.à r.l. (the "Issuer") and Garrett
Borrowing LLC (the "Co-Issuer" and, together with the Issuer,
the "Issuers"), wholly owned subsidiaries of Garrett, have
commenced a private offering of €450 million aggregate principal
amount of senior notes due 2026 (the "Notes"). The precise
size, timing and terms of the Notes are subject to market
conditions and other factors.
In connection with the Spin-Off, Garrett intends to use the
proceeds from the offering of the Notes, together with borrowings
under a new credit facility, to repay intercompany indebtedness to
Honeywell or a subsidiary of Honeywell to pay fees, costs and
expenses related to the new credit facility and the Notes
offering. We anticipate that the repayment to Honeywell or a
subsidiary of Honeywell will be approximately $1.628 billion.
The Notes will be guaranteed on a senior subordinated basis by
Garrett, each of Garrett's domestic subsidiaries and certain of
Garrett's foreign subsidiaries. The Notes will be secured by
security interests granted by the Issuer over the equity interests
in a wholly owned subsidiary of the Issuer and an unsecured
intercompany loan to an indirect wholly owned subsidiary of the
Issuer, which will rank as junior to the security interests granted
by the Issuer in such collateral to secure the new credit facility
and any other future indebtedness secured on a basis senior to the
Notes.
The Notes and related guarantees will be offered to persons
reasonably believed to be qualified institutional buyers in
reliance on Rule 144A under the Securities Act of 1933 as amended
(the "Securities Act"), and to certain non-U.S. persons in
transactions outside of the United
States in reliance on Regulation S under the Securities
Act. The Notes and related guarantees will not be registered
under the Securities Act and may not be offered or sold in
the United States absent
registration or an applicable exemption from registration
requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other security,
nor shall it constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale is unlawful.
Any offers of the Notes or related guarantees will be made only by
means of a private offering memorandum.
About Garrett Motion Inc.
Garrett designs,
manufactures and sells highly engineered turbocharger and electric
boosting technologies for light and commercial vehicle original
equipment manufacturers and the aftermarket. Garrett is a global
technology leader in the turbocharger industry with significant
expertise in delivering products across gasoline, diesel, natural
gas and electrified (hybrid and fuel cell) powertrains. Garrett's
turbocharging and electric-boosting products enable its customers
to improve vehicle performance while addressing continually
evolving and converging regulations that mandate significant
increases in fuel efficiency and reductions in exhaust emissions
worldwide. Garrett maintains a leadership position across all
vehicle types, engine types and regions and deep-seated
relationships with all global original equipment manufacturers
Honeywell is a Fortune 100 software-industrial company that
delivers industry specific solutions that include aerospace and
automotive products and services; control technologies for
buildings, homes, and industry; and performance materials globally.
Our technologies help everything from aircraft, cars, homes and
buildings, manufacturing plants, supply chains, and workers become
more connected to make our world smarter, safer, and more
sustainable.
This release contains certain statements that may be deemed
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, that address activities, events or
developments that we or our management intends, expects, projects,
believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are based upon certain
assumptions and assessments made by our management in light of
their experience and their perception of historical trends, current
economic and industry conditions, expected future developments and
other factors they believe to be appropriate. The forward-looking
statements included in this release are also subject to a number of
material risks and uncertainties, including but not limited to
economic, competitive, governmental, and technological factors
affecting our operations, markets, products, services and prices,
as well as the ability to effect the separations. Such
forward-looking statements are not guarantees of future
performance, and actual results, developments and business
decisions may differ from those envisaged by such forward-looking
statements, including with respect to any changes in or abandonment
of the proposed separations. We identify the principal risks and
uncertainties that affect our performance in Honeywell's Form 10-K,
Garrett's Form 10 Registration Statement and other filings with the
Securities and Exchange Commission.
Contacts:
|
|
Media
|
Investor
Relations
|
Scott
Sayres
|
Mark
Macaluso
|
Honeywell
|
Honeywell
|
(480)
257-8921
|
(973)
455-2222
|
scott.sayres@honeywell.com
|
mark.macaluso@honeywell.com
|
View original
content:http://www.prnewswire.com/news-releases/garrett-motion-inc-launches-offering-of-senior-notes-300712815.html
SOURCE Honeywell