Form 4: Centerbridge Entities Reduce Garrett Motion Stake in Block Trade

Centerbridge Special Credit Partners and related entities sold a significant portion of their Garrett Motion shares through block trades, reducing their overall holdings.

Summary

• Centerbridge Special Credit Partners III-Flex, L.P. and Centerbridge Credit Partners Master, L.P. executed block trade purchase agreements with Garrett Motion, Inc. on December 13, 2024.
• These transactions involved the sale of 1,979,273 and 829,715 shares of Garrett Motion common stock, respectively, at a price of $8.90 per share.
• Following these sales, Centerbridge Special Credit Partners III-Flex, L.P. indirectly holds 24,842,417 shares, and Centerbridge Credit Partners Master, L.P. indirectly holds 10,413,978 shares.
• The transactions were conducted under Rule 16b-3 of the Securities Exchange Act of 1934, as amended, which provides an exemption for certain transactions.

Sentiment

Score: 3

Explanation: The document indicates a large sale of shares by a major investor, which is generally a negative signal for the stock. The sentiment is therefore negative.

Negatives

• Centerbridge entities have reduced their stake in Garrett Motion, which could be interpreted negatively by the market.

Risks

• The reduction in Centerbridge's stake could signal a lack of confidence in Garrett Motion's future performance.
• The market may react negatively to the large volume of shares sold by a major shareholder.

Industry Context

This transaction reflects activity by a major institutional investor in the automotive technology sector, which is currently undergoing significant changes due to electrification and other technological advancements. The sale could be part of a broader portfolio adjustment by Centerbridge.

Comparison to Industry Standards

• Block trades are a common method for large institutional investors to adjust their positions in publicly traded companies.
• The size of the transaction is significant, indicating a notable shift in Centerbridge's investment strategy regarding Garrett Motion.
• Other institutional investors in the automotive sector, such as BlackRock and Vanguard, also regularly adjust their holdings, but the specific reasons for each transaction are unique to the investor's strategy.

Stakeholder Impact

• Shareholders may react negatively to the reduction in Centerbridge's stake, potentially leading to a decrease in the stock price.
• Employees may be concerned about the implications of a major investor reducing their holdings.
• Customers and suppliers may not be directly impacted by this transaction.

Key Dates

Keywords

Garrett Motion, Centerbridge, Block Trade, Share Sale, Securities Exchange Act, Rule 16b-3, Institutional Investor, Stock Transaction