SCHEDULE: Centerbridge Reduces Garrett Motion Stake Below 5%

Centerbridge Partners and its affiliates have significantly reduced their beneficial ownership in Garrett Motion Inc., falling below the 5% threshold after recent open market sales.

Summary

• Centerbridge Credit Partners Master, L.P. and Centerbridge Special Credit Partners III-Flex, L.P., along with their affiliates, have collectively sold 6,250,000 shares of Garrett Motion Inc. common stock.
• The sales occurred over three days: August 20, 2025, August 21, 2025, and August 22, 2025.
• On August 20, 2025, 300,000 shares were sold at $13.2285 per share.
• On August 21, 2025, 5,700,000 shares were sold at an average price of $13.1109 per share.
• On August 22, 2025, 250,000 shares were sold at $13.3301 per share.
• Following these transactions, the reporting persons ceased to beneficially own more than 5% of Garrett Motion's outstanding common stock as of August 22, 2025.
• The percentage ownership calculation is based on 201,575,459 shares outstanding as of July 18, 2025, adjusted for the Issuer's repurchase of 5,000,000 shares on August 20, 2025.

Sentiment

Score: 3

Explanation: The significant reduction in ownership by a major institutional investor like Centerbridge is generally viewed negatively by the market, as it can signal a lack of confidence or a strategic exit, potentially leading to downward pressure on the stock price.

Negatives

• A significant institutional investor, Centerbridge, has substantially reduced its stake in Garrett Motion, potentially signaling a lack of confidence or a strategic exit.
• The sale of 6,250,000 shares by Centerbridge could put downward pressure on the stock price due to increased supply.

Risks

• The reduction in ownership by a major institutional investor like Centerbridge could be perceived negatively by the market, potentially leading to decreased investor confidence.
• Increased selling pressure from a large block of shares being divested could impact the stock's liquidity and price stability.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from Garrett Motion Inc. or the reporting persons regarding the company's future performance.

Industry Context

This filing primarily concerns a change in institutional ownership rather than broader industry trends. However, a significant reduction in stake by a major investor could be interpreted by the market as a signal regarding the investor's view on the company's future prospects within its industry.

Stakeholder Impact

• Shareholders: May experience increased selling pressure and a potential decline in share price due to the large block sale and the perceived loss of confidence from a major investor.
• Company Management: May face questions from other investors regarding the reasons for Centerbridge's divestment and its implications for future strategic direction.

Key Dates

Recommendation

The substantial reduction in stake by a major institutional investor like Centerbridge, culminating in their ownership falling below the 5% threshold, typically signals a lack of conviction or a strategic exit. This action can be interpreted by the market as a negative indicator for Garrett Motion's future prospects, potentially leading to increased selling pressure and a decline in share price. Seasoned investors would likely view this as a signal to reduce or exit their positions, anticipating potential downward price movement.

Keywords

Garrett Motion, Centerbridge Partners, Schedule 13D/A, Share Sale, Institutional Investor, Equity Ownership, Common Stock, SEC Filing