SCHEDULE: Cyrus Capital Trims Garrett Motion Stake to 4.7%

Cyrus Capital Partners has reduced its beneficial ownership in Garrett Motion Inc. to 4.7% through recent share sales and disclosed short call options.

Summary

• Cyrus Capital Partners, L.P., its general partner Cyrus Capital Partners GP, L.L.C., and Stephen C. Freidheim collectively reported a beneficial ownership of 9,084,973 shares of Garrett Motion Inc. common stock, representing 4.7% of the outstanding shares.
• Cyrus Capital Advisors, L.L.C. separately reported beneficial ownership of 5,878,052 shares, representing 3.0% of the outstanding shares.
• The percentages are calculated based on 194,482,518 shares of common stock outstanding as of October 17, 2025.
• Since the filing of Amendment No. 6, the reporting persons sold a total of 2,659,741 shares of common stock in open market transactions between December 8, 2025, and December 16, 2025.
• These sales occurred at weighted average prices ranging from $16.4678 to $17.0600 per share, with price ranges between $16.3650 and $17.1900.
• Cyrus Funds have also entered into physically settled short call options relating to 910,000 shares of common stock, with strike prices ranging from $16.00 to $18.00, and an expiration date of December 19, 2025.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant reduction in beneficial ownership by a major institutional investor, potentially signaling a lack of confidence or a strategic divestment. The presence of short call options further indicates a potential for future stake reduction.

Positives

• The reporting persons continue to hold a significant stake in Garrett Motion Inc., indicating ongoing interest in the company's performance despite recent sales.

Negatives

• Cyrus Capital Partners and its affiliates have significantly reduced their stake in Garrett Motion Inc. by selling 2,659,741 shares, which could signal a less optimistic outlook.
• The sales occurred at prices ranging from $16.3650 to $17.1900, potentially indicating a belief that the stock price may not appreciate significantly in the short term or a portfolio rebalancing.
• The existence of short call options on 910,000 shares suggests a potential obligation to sell more shares if the options are exercised, which would further reduce their beneficial ownership.

Risks

• Significant selling by a major institutional investor like Cyrus Capital Partners could signal a lack of confidence in the company's near-term prospects, potentially leading to negative market sentiment and downward pressure on the stock price.
• The short call options expiring on December 19, 2025, could lead to further reduction of Cyrus Capital's stake if exercised, potentially adding selling pressure to the stock.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance from Garrett Motion Inc. It primarily reports on past transactions and current holdings of an institutional investor.

Industry Context

This filing reflects a significant institutional investor's decision to reduce its stake in Garrett Motion Inc. While the specific reasons for Cyrus Capital's divestment are not detailed, such a move by a major holder can sometimes signal a shift in investment strategy or a re-evaluation of the company's prospects within its industry, which includes automotive turbochargers and electric boosting technologies. The automotive supply industry is currently navigating transitions related to electrification and global supply chain dynamics, which could influence investor sentiment.

Stakeholder Impact

• Shareholders: Existing shareholders may view the reduction in stake by a major investor negatively, potentially leading to downward pressure on the stock price.
• Company Management: May need to address investor concerns regarding the significant divestment by a prominent institutional holder.

Next Steps

• The short call options held by Cyrus Funds will expire on December 19, 2025, which may lead to further transactions depending on the stock price relative to the strike prices.

Key Dates

Recommendation

The significant reduction in stake by a major institutional investor like Cyrus Capital Partners, coupled with the existence of short call options, suggests a bearish outlook from a sophisticated market participant. This divestment could signal concerns about Garrett Motion Inc.'s future performance or valuation, potentially leading to negative market sentiment and downward pressure on the stock price. Investors might consider selling to avoid potential losses or re-evaluate their position in light of this institutional selling.

Keywords

Garrett Motion Inc., Cyrus Capital Partners, Schedule 13D/A, Beneficial Ownership, Share Sales, Institutional Investor, Common Stock, Equity Stake, Call Options