Meyer Burger raises $107 million in bond issue

Swiss PV equipment supplier Meyer Burger Technology has raised CHF 100 million ($107 million) in a convertible bond issue.

The company said it wouild use the proceeds from the offering to fund potential working capital requirements, investments in demo equipment and general corporate purposes.

The senior unsecured convertible bonds are due 2020 and carry an investor put option in 2018.

The bond coupon has been set at 4%m, with the conversion price fixed at CHF 11.39, representing a premium of 27.5% over the average share price between the announcement and pricing of the bonds.

Issued at 100% of their principal amount, the bonds, unless previously redeemed, converted or repurchased and cancelled, will mature on September 24, 2020, at 100% of their principal amount.

The bonds will be convertible into 8.78 million registered Meyer Burger shares, representing 9.77% of the company’s current outstanding share capital. Meyer Burger said it excluded the pre-emptive rights of current shareholders to subscribe to the bonds and added that the offering attracted high demand from domestic and international investors.

The company will also apply for the bonds to be admitted for listing and trading on the SIX Swiss Exchange, with provisional trading expected to start on or around September 23. Payment and settlement of the bonds is expected to be on or around September 24.

The offering consisted of a public offering in Switzerland and private placements in certain jurisdictions outside of Switzerland and the United States.

Credit Suisse and UBS are acting as joint bookrunners on the bond offering.

Meyer Burger last month posted a net loss for the first half of the year of CHF 88 million ($94 million), up 9% year-on-year, while overall revenue rose 43% to CHF 129 million ($137.5 million).

The group has said it expects substantial improvements in incoming orders and net sales compared to 2013 and also anticipates a reduction in operating expenses of CHF 10 million ($11 million) as of 2015.

On the technology front, Meyer Burger reports that it posted orders for new products including heterojunction equipment, diamond wire and sawing materials and equipment, SmartWire Connection technology and measurement equipment for high efficiency cells.