Latham Represents SI Group in Its Recapitalization, Strengthening of Its Financial Position

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. SI Group has 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 US$218 million 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 US$150 million 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.

Latham & Watkins LLP represents SI Group in the transaction with a multidisciplinary team led by Washington, D.C. partners Nick Luongo, Jason Licht, Jeffrey Chenard and Katherine Putnam, with New York partner David Hammerman. Advice was provided on corporate matters by Washington, D.C. partner Chris Clark and counsel Chris Cronin, with associates Lucas Balchun, Gabrielle Blum, Lis Ryan, Zach Lippman, and Brad Guest; on finance matters by associates Melissa Doura, Matt Bargamin, Katie Prezioso,* and Jake Goodman; on restructuring matters by Washington, D.C. partner Andrew Sorkin, with associate Jonathan Weichselbaum; on structured finance matters by New York partners Loren Finegold, with associate Maeve Chandler; on tax matters by Washington, D.C. partners Andrea Ramezan-Jackson and Matthew Conway, with New York partner Aaron Bernstein; on UCC matters by New York partner Brian Rock; and on Real Estate matters by New York partner Dara Denberg.

*Admitted to practice in the District of Columbia.