SI Group, a global developer and manufacturer of performance additives, process solutions and chemical intermediates, completed a comprehensive recapitalization transaction supported by its lenders and equity partners. Through this transaction, SI Group has reduced its outstanding net indebtedness by approximately $1.7 billion (over 80% reduction) and made amendments to its revolving credit facility, both of which materially enhance SI Group’s financial and operational flexibility going forward. In addition, a new institutional ownership group has injected $150 million of junior capital. This investment will enable SI Group to fund working capital needs, invest in key operational initiatives and accelerate growth to serve the needs of its customers and business partners.
“This recapitalization represents an important step for SI Group,” David Bradley, president and CEO of SI Group, said. “By reducing our debt and securing new investment, we have strengthened our financial foundation, allowing us to continue investing in growth, improving operational capabilities and supporting our customers worldwide. We appreciate the partnership of our new institutional investors, whose commitment reflects confidence in our strategy and positions us for long-term success.”
Latham & Watkins served as legal advisor, PJT Partners served as investment banker, AlixPartners served as financial advisor to SI Group. Akin Gump Strauss Hauer & Feld served as legal advisor and Lazard served as investment banker to an ad hoc group of the company’s second-out term loan lenders. Baker Botts L.L.P. served as legal advisor to the company’s pre-transaction equity holders.
