Oaktree Early Warning Press Release Regarding Neo Performance Materials Inc.

LOS ANGELES, Dec. 23, 2020 /CNW/ - Funds managed by Oaktree Capital Management, L.P. ("Oaktree") announced today that, in connection with a secondary offering of common shares ("Common Shares") of Neo Performance Materials Inc. ("Neo") (TSX: NEO) carried out by way of a short form prospectus of Neo dated December 17, 2020, it disposed of 3,932,500 Common Shares (the "Subject Shares") held through OPPS NPM SARL ("OPPS NPM") and OPPS NPM II SARL ("OPPS NPM II", and together with OPPS NPM, the "Selling Shareholders"), affiliates of certain funds and accounts managed by Oaktree (the "Transaction"). The Subject Shares were sold at a price of $12.10 per share for aggregate gross proceeds to the Selling Shareholders of approximately $47.6 million. The Transaction, which closed on December 22, 2020, was carried out pursuant to the terms of an underwriting agreement dated December 10, 2020 among the Neo, the Selling Shareholders and Paradigm Capital Inc., as lead underwriter, Cormark Securities Inc., Canaccord Genuity Corp., CIBC World Markets Inc., Raymond James Ltd., RBC Dominion Securities Inc., Scotia Capital Inc. and Stifel Nicolaus Canada Inc. (the "Underwriters").  

Prior to the Transaction, Oaktree (through the Selling Shareholders) held an aggregate of 26,216,655 Common Shares (including the Subject Shares), representing approximately 69.9% of the issued and outstanding Common Shares. Pursuant to the Transaction, OPPS NPM and OPPS NPM II disposed of beneficial ownership of the Subject Shares (or 3,792,459 Common Shares and 140,041 Common Shares, respectively), representing in aggregate approximately 10.5% of the issued and outstanding Common Shares (or 10.1% and 0.4%, respectively). As a result of the Transaction, OPPS NPM and OPPS NPM II hold an aggregate of 22,284,155 Common Shares (or 21,988,621 Common Shares and 295,514 Common Shares, respectively), representing approximately 59.5% of the issued and outstanding Common Shares (or 58.7% and 0.8%, respectively). As a result, immediately following the Transaction, Oaktree (through the Selling Shareholders) holds 22,284,155 Common Shares, representing approximately 59.5% of the issued and outstanding Common Shares.

The Transaction constituted a public offering of Common Shares and sale of a portion of Oaktree's holdings of Neo. In connection with the Transaction, net proceeds of approximately $46.6 million were paid to, and received by, Oaktree (through OPPS NPM and OPPS NPM II), representing the aggregate gross proceeds of the Transaction less the portion of fees paid to the Underwriters by the Selling Shareholders.

Oaktree intends to hold its Common Shares for investment purposes. Oaktree may from time to time, depending on market and other conditions, acquire additional Common Shares or dispose of Common Shares through market transactions, public offerings, private agreement or otherwise.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issuers. An early warning report with additional information in respect of the foregoing matters will be filed and made available on the System for Electronic Document Analysis and Review (SEDAR) at www.sedar.com under Neo's issuer profile.

SOURCE Oaktree Capital Management, L.P.

A copy of such report may also be obtained by contacting Ivan Grbešić of Stikeman Elliott LLP, on behalf of Oaktree, at telephone number [phone].