Oaktree Early Warning Press Release Regarding Neo Performance Materials Inc.

LOS ANGELES, April 28, 2021 /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 April 20, 2021, it disposed of 4,600,000 Common Shares (the "Subject Shares") held through OPPS NPM SARL ("OPPS NPM" or the "Selling Shareholder"), an affiliate of certain funds and accounts managed by Oaktree (the "Transaction"). The Subject Shares were sold at a price of $19.75 per share for gross proceeds to the Selling Shareholder of approximately $86.3 million. The Transaction, which closed on April 27, 2021, was carried out pursuant to the terms of an underwriting agreement dated April 12, 2021 among the Neo, the Selling Shareholder and Paradigm Capital Inc., as lead underwriter, RBC Dominion Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., Raymond James Ltd., Scotia Capital Inc., and Stifel Nicolaus Canada Inc. (the "Underwriters").  

Prior to the Transaction, Oaktree (through the Selling Shareholder) held 17,109,155 Common Shares (including the Subject Shares), representing approximately 45.4% of the issued and outstanding Common Shares. Pursuant to the Transaction, OPPS NPM disposed of beneficial ownership of the Subject Shares, representing approximately 12.2% of the issued and outstanding Common Shares. As a result, following the Transaction, OPPS NPM holds 12,509,155 Common Shares, representing approximately 33.2% of the issued and outstanding Common Shares, and Oaktree (through OPPS NPM) holds 12,509,155 Common Shares, representing approximately 33.2% 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 $86.3 million were paid to, and received by, Oaktree (through OPPS NPM), representing the gross proceeds of the Transaction less the fees paid to the Underwriters by the Selling Shareholder.

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. 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].

SOURCE Oaktree Capital Management, L.P.