Meyer Burger Technology AG signed a new secured bridge loan facility that is intended to provide the stability needed for restructuring and to re-negotiate an agreement with D.E. Shaw Renewable Investments (DESRI).
“With this first but major financing step, we start re-powering the company to finalize the ramp-up of our production lines to full capacity of 1.4 GW per annum, supporting a stable and fully funded business case,” said Franz Richter, Executive Chairman of Meyer Burger.
The solar manufacturer’s business viability was in question in November when DESRI, one of the largest solar developers in the U.S., terminated its master purchase agreement with the manufacturer. The five-year deal that included purchasing up to 5 GW of solar modules was instrumental in supporting Meyer Burger’s new manufacturing facility in Goodyear, Arizona.
The DESRI deal was terminated after Meyer Burger had canceled plans to open a 2 GW solar cell manufacturing facility in the United States. The company said continuing to manufacture solar cells in Thalheim, Germany was the most economical option in the current market conditions.
Since DESRI terminated the original deal, Meyer Burger, supported by the ad hoc group of bondholders, has been in discussions with them to try to hash out a new agreement. If executed, it is expected to be finalized in December.
“We are committed to strengthening our relationship with DESRI, which, if successful, will underscore the quality of our technology and highlight our future potential in the U.S. market,” said Franz Richter, executive chairman of Meyer Burger. “We look forward to fully ramping up our production lines in Goodyear and delivering our high performance modules to the solar power plant segment.”
The loan facility provides up to $39.5 million to be drawn in multiple tranches upon the satisfaction of certain milestones through January 17, 2025, with the initial tranche of $19.7 million expected to be drawn immediately. The funds are intended to keep the business afloat as it negotiates a definitive agreement among DESRI, certain existing bondholders and other relevant parties.
The lenders under the facility consist of certain funds managed by Highbridge Capital Management, LMR Partners, System 2 Capital, Walleye Capital and Whitebox Advisors, among others, all of which are existing bondholders in Meyer Burger.
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