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. 2, 2024 -- 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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