Oaktree’s Neo raises $200 mln from IPO, begins TSX trading

Neo Performance Materials Inc, an advanced materials supplier, has closed its initial public offering in Canada. The company raised gross proceeds of more than $200 million, all of which will go to its majority owner, U.S. distressed investor Oaktree Capital Management. The amount raised may increase to $230 million if the offering’s greenshoe option is fully exercised. Toronto-based Neo Performance, which emerged from bankruptcy last year, will commence trading today on the Toronto Stock Exchange under the symbol “NEO”. The company originally priced its IPO to raise as much as $345 million.

PRESS RELEASE

Neo Completes Initial Public Offering

TORONTO, Dec. 08, 2017 (GLOBE NEWSWIRE) — Neo Performance Materials Inc. (the “Company”) today announced the successful closing of its previously announced initial public offering by way of secondary offering (the “Offering”) of common shares of the Company (the “Common Shares”), by the Company’s majority shareholder, OCM Neo Holdings (Cayman), L.P. (the “Selling Shareholder”), an affiliate of certain funds and accounts managed by Oaktree Capital Management, L.P. The Selling Shareholder sold 11,115,000 Common Shares under the Offering at a price of $18.00 per share for total gross proceeds to the Selling Shareholder of $200,070,000.

The Common Shares will commence trading today on the Toronto Stock Exchange under the symbol “NEO”.

The Offering was made through a syndicate of underwriters led by Scotiabank and RBC Capital Markets acting as joint bookrunners, and Cormark Securities Inc. acting as co-lead underwriter, and includes CIBC World Markets Inc., Barclays Capital Canada Inc., Canaccord Genuity Corp., GMP Securities L.P. and Raymond James Ltd.

The underwriters were granted an over-allotment option (the “Over-Allotment Option”) to purchase up to an additional 1,667,250 Common Shares from the Selling Shareholder, at a price of $18.00 per share for additional gross proceeds of approximately $30,010,500 if the Over-Allotment Option is exercised in full. The Over-Allotment Option can be exercised for a period of 30 days from the closing date of the Offering.

No securities regulatory authority has either approved or disapproved the contents of this news release. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the common shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Neo Performance Materials

Neo Performance Materials is a global leader in the innovation and manufacturing of rare earth- and rare metal-based functional materials, which are essential inputs to high technology, high growth, future-facing industries. The business of the Company is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. The Company is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, US; and Beijing, China. The Company operates globally with sales and production across 10 countries, being Japan, China, Thailand, Estonia, Singapore, Germany, United Kingdom, Canada, United States, and South Korea. For more information, please visit www.neomaterials.com.

Information Contact

Ali Mahdavi
Investor Relations
(416) 962-3300
Email: am@spinnakercmi.com

Jim Sims
Media Relations
(303) 503-6203
Email: j.sims@neomaterials.com

Website: www.neomaterials.com
e-mail: info@neomaterials.com

Photo courtesy of Reuters/David Becker