Meyer Burger, a manufacturer of solar cells and modules, secured a bridge loan facility of up to $39.48 million to be drawn in multiple tranches upon the satisfaction of certain milestones. The maturity date of the facility is January 17, 2025. The initial tranche of $19.7 million is expected to be drawn immediately.
The lenders under the financing consist of certain funds managed by, among others, Highbridge Capital Management, LMR Partners, System 2 Capital, Walleye Capital, and Whitebox Advisors, all existing bondholders in the company.
In November, the company received a letter from its customer, D. E. Shaw Renewable Investments (DESRI), saying that it terminated the master agreement with Meyer Burger with immediate effect. The deal, signed in 2022, was to supply a minimum of 3.75 GW of solar modules for DESRI’s large-scale projects, with delivery scheduled between 2024 and 2029. Additionally, DESRI held a first right of refusal to increase the contract quantity to 5 GW.
Meyer Burger, supported by the ad hoc group of bondholders, has engaged in constructive discussions with DESRI regarding the terms of a new agreement.
The cash received under the facility, if received in full, creates a cash runway intended to fund the business while the company negotiates a definitive agreement with DESRI, certain existing bondholders, and other relevant parties, with the aim of achieving a sustainable financing and capital structure for Meyer Burger.
“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.
According to Mercom’s 9M and Q3 2024 Solar Funding and M&A report, announced solar debt financing activity in 9M 2024 totaled $16.7 billion in 68 deals, 4% higher year-over-year than 9M 2023, when $16 billion was raised in 54 deals.
In August, Trina Solar, a solar module manufacturer, secured a $235 million non-recourse senior secured term green loan facility from Standard Chartered to support the development, construction, and operation of a 1.35 million square foot solar photovoltaic manufacturing plant in Wilmer, Texas.
