Meyer Burger has landed a $39.48 million loan from a lending consortium of some of its existing bondholders
This provides it with enough liquidity to reach definitive agreements with its bondholders and DESRI
It will also ramp up its US module production lines to 1.4 GW/annum at Goodyear, Arizona
A new secured bridge loan facility of $39.48 million has given European heterojunction (HJT) solar PV manufacturer Meyer Burger Technology AG a breather. This would provide for a sustainable restructuring solution to stabilize its final position in the long term.
As one of the biggest names in the European solar PV industry, the company had sent alarm bells ringing in November 2024 when its largest customer D.E. Shaw Renewable Investments (DESRI) pulled out of the agreement to source 3.75 GW US-made modules, with a possible expansion to 5 GW (see Meyer Burger Doubts Ability To Maintain Going Concern Status).
The financing, according to the management, provides ‘sufficient liquidity’ for the company to reach definitive agreements with an ad hoc group of existing bondholders and DESRI.
Based on its current financial and operational situation, it is now negotiating a new agreement with DESRI with whom it is in ‘constructive discussions.’ A final decision is expected within December 2024.
“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 Meyer Burger’s Executive Chairman Franz Richter. “We look forward to fully ramping up our production lines in Goodyear and delivering our high-performance modules to the solar power plant segment.”
Additionally, it plans to use the funds to finalize the ramp-up of its production lines to a full capacity of 1.4 GW/annum.
The lending consortium includes certain funds managed by, among others, Highbridge Capital Management LLC, LMR Partners, System 2 Capital LLP, Walleye Capital LLC and Whitebox Advisors LLC, all of which are existing Meyer Burger bondholders.
Earlier this year, Meyer Burger put its 2 GW US solar cell production facility project on hold saying it is not financially viable. The company also lowered the annual production capacity of the 2 GW Goodyear, Arizona module factory to 1.4 GW which is to be fed with solar cells produced at its Thalheim, German factory (see Meyer Burger Shelves 2 GW US Solar Cell Manufacturing Factory Plans).