Honeywell International Inc. (NYSE: HON) has announced that, in connection with the spin-off of Garrett Motion Inc. from Honeywell, Garrett LX I S.Ã r.l. and Garrett Borrowing LLC have commenced a private offering of EUR 450 million aggregate principal amount of senior notes due 2026, the company said.
The precise size, timing and terms of the Notes are subject to market conditions and other factors.
In connection with the Spin-Off, Garrett said it 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. Repayment to Honeywell is anticipated to be approximately USD 1.628 billion.
Garrett designs, manufactures and sells highly engineered turbocharger and electric boosting technologies for light and commercial vehicle original equipment manufacturers and the aftermarket.
Honeywell is a software-industrial company that delivers industry specific solutions that include aerospace and automotive products and services.