Montrose Environmental at a Glance
Summary of Oaktree A-2 Preferred
Investment Summary
In April 2020, Oaktree Capital
purchased $175mm of Series
A-2 Preferred Equity to fund
the cash portion of the CTEH
purchase price
We believe the ongoing
investment is indicative of
Oaktree's optimism regarding
Montrose's long term
prospects and the CTEH
acquisition
•
Post-IPO Terms
No fixed maturity date
Repayable in cash at Company's
option (subject to certain
minimum amounts and returns)
• 9.0% annual cash dividend,
payable quarterly
• Beginning in year 4, a portion
of principal balance becomes
convertible into common stock
during each of years 4, 5 and 6
at Oaktree's option (converts at
15.0% discount to market)
Includes mandatory notice period
prior to conversion to give
Montrose the option to repay in
cash
Governance
• Oaktree has the right to
appoint one representative
on the Montrose board of
directors while A-2
Preferred Equity remains
outstanding
© 2023 Montrose Environmental Group, Inc. Proprietary. 21View entire presentation