TPI Composites, Inc.Announces Oaktree Capital Investment of Up to $ 600 Million – Strengthens Liquidity Position and Supports Long-Term Strategy and Outlook – Form 8-K

TPI Composites, Inc.Announces Up To $ 600 Million In Capital Investment Of

Oaktree – strengthens its liquidity position and supports the long-term strategy and

Outlook

Scottsdale, AZ, November 8, 2021 – TPI Composites, Inc. (Nasdaq: TPIC), the only independent manufacturer of composite wind blades with a global footprint, today announced that it has entered into an agreement to purchase shares to issue and sell $ 400 million of Series A preferred shares to investment funds managed by Oaktree Capital Management (“Oaktree”). Pursuant to the share purchase agreement, TPI will issue and sell $ 350 million of Series A preferred shares to Oaktree, subject to customary closing conditions. TPI may also choose, at its discretion, to require Oaktree to purchase an additional $ 50 million of Series A preferred shares on the same terms as the initial issuance of Series A preferred shares during the two-year period following the closing of the initial issue. . TPI expects the initial closing of the sale of the Series A preferred shares to occur in late November. Upon closing, TPI will also issue a warrant to Oaktree to purchase approximately 4.7 million common shares of TPI with a term of five years and an exercise price of $ 0.01 per share. Subject to mutual agreement between TPI and Oaktree, Oaktree may invest an additional $ 200 million for follow-on capital.

The Series A preferred shares will be entitled to dividends at the rate of 11% per annum and may be paid in kind for the first two years following the sale of the Series A preferred shares. TPI intends to use the net proceeds. the sale of the Series A preferred shares to repay all outstanding debts under its senior credit facility and the balance for general corporate purposes. After the initial investment closes, Oaktree will have the right to appoint a member to TPI’s board of directors.

“Oaktree is an experienced investor in the power and energy value chains and today’s announcement is a strong endorsement of our strategy and growth outlook. Oaktree’s investment will significantly strengthen our balance sheet and position TPI to navigate a rapidly changing market and operating environment in the long term while providing the flexibility to take advantage of long-term growth opportunities, ”noted Bill Siwek, President and CEO of TPI.

“We are delighted to partner with TPI through this investment. TPI’s strong market position and long-term customer relationships ideally position the company to continue to play a key role in the ongoing and accelerating global transition to renewable energy. Said Peter Jonna, Managing Director of Oaktree’s Power Opportunities Group. Brook Hinchman, Managing Director and Co-Head of North America for Oaktree’s Global Opportunities Group, added, “We appreciate the opportunity to work with Bill and the TPI team to provide capital for accelerate the growth of the company in a sector that is imperative for the clean energy transition. ”

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Additional information regarding the investment and the Series A preferred shares will be included in a current report on Form 8-K which will be filed by TPI with the Securities and Exchange Commission.

Lazard acted as financial advisor to TPI. Goodwin Procter LLP acted as legal counsel to TPI and Sullivan & Cromwell acted as legal counsel to Oaktree.

About TPI Composites, Inc.

TPI Composites, Inc. is the only independent manufacturer of composite wind turbine blades for the wind power market with a global manufacturing footprint. TPI provides high-quality, cost-effective composite solutions through long-term relationships with major OEMs in the wind and transportation markets. TPI is headquartered in Scottsdale, Arizona, and operates manufacturing facilities in the United States, China, Mexico, Turkey, and India. TPI operates additional engineering development centers in Denmark and Germany.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $ 158 billion in assets under management as of September 30, 2021. The company emphasizes an opportunistic, value-driven and risk-based approach controlled investments in credit, private equity, real estate assets and listed stocks. The company has more than 1,000 employees and offices in 19 cities around the world. For more information, please visit the Oaktree website at http://www.oaktreecapital.com/.

Forward-looking statements

This press release contains forward-looking statements that are made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding the estimated closing date of the preferred share financing transaction of series A; the growth of the wind energy and electric vehicle markets and our addressable markets for our products and services; the effects on our financial statements and financial outlook; our

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business strategy, including anticipated trends and developments and management plans for our business and the wind industry and other markets in which we operate; the expected annual growth in our revenues; competetion; future financial results, operating results, revenues, gross margin, operating expenses, profitability, revenues, projected costs, warranties, our ability to improve our operating margins and capital expenditures. These forward-looking statements are often characterized by the use of words such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “seek”, “believe” , “Predict,” “predict”, “probable”, “may”, “should”, “objective”, “target”, “could”, “will”, “could”, “foresee”, “continue” and the negative or plural of these and other comparable terms. Forward-looking statements are only predictions based on our current expectations and projections regarding future events. You should not place undue reliance on these forward-looking statements. assume no obligation to update these forward-looking statements for any reason. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or actual achievements differ significantly from those expressed or s e implied by these statements. These factors include, but are not limited to, matters discussed in the “Risk Factors” section of our Annual Report on Form 10-K and other reports that we will file with the SEC.

Investor Relations

480-315-8742

[email protected]

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Disclaimer

Composites TPI inc. published this content on November 10, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on Nov 10, 2021 10:34:22 PM UTC.

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Analyst Recommendations on TPI COMPOSITES, INC.
Sales 2021 1,731 million

Net income 2021 -136 million

Net cash position 2021 61.7 million

PER 2021 ratio -6.75x
Yield 2021
Capitalization 922 million
922 million
VE / Sales 2021 0.50x
VE / Sales 2022 0.52x
Number of employees 14,900
Free float 96.3%

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Number of analysts 15
Last closing price

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Average price target

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Spread / Average target 52.9%


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