Initial exchange participation of
approximately 100% of 1L Lenders and 89% of Unsecured Notes
SK Capital Partners & Affiliates provide a
new money investment of $150mm in connection with the
Transaction
THE
WOODLANDS, Texas, Oct. 1, 2024
/PRNewswire/ -- SI Group, a leading global developer and
manufacturer of performance additives, process solutions,
pharmaceuticals and chemical intermediates, closed a private
exchange transaction supported by a significant majority of its
existing creditors on September 18,
2024, and concurrently announced a public exchange offer to
its remaining creditors to participate in a follow-on transaction
on the same terms (collectively, the "Transaction"). SI Group (or
the "Company") today announced the initial results of the
Transaction as of the initial settlement date, September 30, 2024, with support from
approximately 100% of 1L Lenders and 89% of Unsecured Notes. This
broad Transaction participation underscores creditors' confidence
in the Company and its long-term outlook.
The Transaction extends debt maturities to 2028, increases
liquidity via full access to a new $218mm revolving credit facility
and results in an overall reduction in the Company's annual cash
interest expense. In connection with the Transaction, SK Capital
Partners, the Company's financial sponsor, and Affiliates provided
a total new money investment of $150mm to further bolster liquidity
and repay debt.
The Transaction materially improves SI Group's go-forward
liquidity profile and better positions the Company to capitalize on
a future broader industry recovery.
The successful restructuring of SI Group's capital structure,
with strong support from SK Capital and lenders, will allow SI
Group to focus on continuing to implement key improvement
initiatives, serving customers, and furthering its long-term goal
of becoming the global performance additives powerhouse.
The Transaction will remain open until 5:00 p.m., New York
City time, on October 16,
2024. Holders of Unsecured Notes are required to tender
prior to 5:00 p.m., New York City time, on October 1, 2024, to receive the Early
Participation Premium.
Latham & Watkins LLP acted as SI Group's legal counsel and
PJT Partners served as the financial advisor to the Company.
An Ad Hoc Group of First Lien Lenders and holders of Unsecured
Notes was advised by Milbank LLP, and the administrative agent for
the new credit facilities was advised by Davis Polk & Wardwell LLP.
About SI Group
SI Group is a global leader in the innovative technology of
performance additives, process solutions, and chemical
intermediates. SI Group's solutions enhance the quality and
performance of industrial and consumer goods in the plastics,
rubber & adhesives, fuels & lubricants, oilfield, and
pharmaceutical industries. Headquartered in The Woodlands, Texas, USA, SI Group operates
19 manufacturing facilities across three continents, serving
customers in 80 countries with the support of approximately 1,800
employees worldwide. In 2023, SI Group published its inaugural ESG
report, showcasing its commitment to continuous improvement and
sustainability. SI Group innovates and drives change to create
value with a passion for safety, chemistry, and extraordinary
results. Learn more at www.siigroup.com.
Media Contact:
Joseph Grande 
ph: + 1.413.684.2463
joe@jgrandecommunications.com
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SOURCE SI Group, Inc.