Oaktree reducing holdings againSecond secondary offering , Oaktree will hold under 50% after deal.
Neo Performance Materials Announces $70.9 Million Bought Deal Secondary Offering of Common Shares
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, /CNW/ - Neo Performance Materials Inc. ("
Neo ", the "
Company ") (TSX: NEO) is pleased to announce that it and funds managed by Oaktree Capital Management, L.P. (each, a "
Selling Shareholder " and collectively, the "
Selling Shareholders ") have entered into an agreement with Paradigm Capital Inc. (the "
Lead Underwriter "), on behalf of a syndicate of underwriters (together with the Lead Underwriter, the "
Underwriters "), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, from the Selling Shareholders 4,500,000 common shares of the Company (the "
Common Shares ") at a price of per Common Share (the "
Offering Price ") for total gross proceeds to the Selling Shareholders of approximately
(the " Offering "). The Company will not be receiving any of the proceeds of the Offering.
In addition, the Selling Shareholders have granted the Underwriters an option to purchase that number of additional Common Shares at the Offering Price equal to 15% of the base Offering, exercisable up to 30 days following the closing of the Offering.
The Selling Shareholders currently hold 22,284,155 common shares of the Company, representing approximately 59% of the issued and outstanding common shares. Following the closing of the Offering, the Selling Shareholders will hold 17,784,155 common shares, representing approximately 47% of the issued and outstanding common shares. In addition, each of the Selling Shareholders, their affiliates and other entities managed by Oaktree Capital Management, L.P. have agreed with the Underwriters that their remaining common shares of the Company will be subject to a 120 day lock-up period, subject to customary exceptions.