SCHEDULE: Oaktree Reduces Garrett Motion Stake via Share Repurchase

Oaktree funds sold 5 million shares of Garrett Motion common stock back to the company for $12.42 per share, reducing their aggregate ownership to 16.22%.

Summary

• Oaktree entities, including Oaktree Value Opportunities Fund Holdings, L.P., OCM Opps GTM Holdings, LLC, Oaktree Phoenix Investment Fund L.P., and Oaktree Opportunities Fund Xb Holdings (Delaware), L.P., collectively sold 5,000,000 shares of Garrett Motion Inc. common stock.
• The shares were sold to Garrett Motion Inc. (the Issuer) at a price of $12.42 per share on August 20, 2025.
• Following this transaction, the Oaktree Reporting Persons beneficially own an aggregate of 31,894,816 shares of Common Stock.
• This represents approximately 16.22% of Garrett Motion's common stock outstanding, calculated based on 201,575,459 shares outstanding as of July 18, 2025, minus the 5,000,000 repurchased shares.

Sentiment

Score: 6

Explanation: The transaction is a planned share repurchase, which can be positive for remaining shareholders by reducing share count. However, a significant institutional investor reducing its stake could be viewed with slight caution, balancing out the positive of the repurchase.

Positives

• Garrett Motion's share repurchase indicates management's confidence in the company's valuation and can be accretive to earnings per share for remaining shareholders.
• The repurchase provides liquidity to Oaktree funds at a specific price, allowing them to realize value from their investment.

Negatives

• Oaktree's reduction in its stake could be interpreted as a decrease in conviction or a strategic exit, potentially signaling a lack of significant upside from their perspective.
• The company used capital for the repurchase, which could have been allocated to other strategic initiatives, debt reduction, or dividends.

Future Outlook

No forward-looking statements or guidance are provided in this Schedule 13D/A filing.

Industry Context

This filing primarily concerns a change in institutional ownership and a share repurchase, which are internal corporate finance activities. It does not provide specific details to analyze broader industry trends or competitive positioning.

Related Party Transactions

• The transaction involves Garrett Motion Inc. repurchasing shares from Oaktree entities, which are significant shareholders and could be considered related parties due to their substantial ownership and historical involvement with the company.

Stakeholder Impact

• Shareholders: Remaining shareholders benefit from a reduced share count, potentially leading to higher earnings per share. Oaktree funds realize liquidity from their investment.
• Company: Garrett Motion uses capital for the repurchase, impacting its cash reserves and capital allocation strategy.

Key Dates

Recommendation

The share repurchase is a positive signal for existing shareholders, as it reduces the share count and can be accretive to EPS. However, a major institutional investor like Oaktree reducing its stake, even through a repurchase, might suggest a tempered outlook on significant future upside from their perspective. Without additional financial performance data or strategic updates, a 'hold' recommendation is appropriate, advising investors to maintain their current position while monitoring future company performance and Oaktree's remaining stake.

Keywords

Garrett Motion, Oaktree Capital, Share Repurchase, Schedule 13D/A, Common Stock, Beneficial Ownership, Institutional Investor, Equity Stake