It’s been just over two months since Swiss solar technology provider Meyer Burger announced a major restructuring program, to clean up the company’s finances. Then, just last month, it announced a recapitalization program, as part of the restructuring. Today the wheels of the program were set in motion, as the company’s Board of Directors approved the proposals with a large majority.
The final terms of the planned capital increase were announced early this morning, before the commencement of the Extraordinary Shareholders’ Meeting. Within the terms, it was confirmed that CHF 164.5 million (USD 162.64 million) would be sought with the issuance of 456,851, 800 new registered shares. These shares are due to be offered to existing shareholders of Meyer Burger for an offer price of CHF 0.36 per share.
Credit Suisse and UBS are to take charge of the capital increase, with the first trading of the new shares expected to take place on 20 December 2016. Interestingly, the capital increase will only be completed provided that the gross proceeds amount to at least CHF 160 million. CHF 32.4 million of this has already been agreed to, in principle, as Veraison Capital and zCapital have already committed to purchase 90.1 million of the unsubscribed shares.
Along with the capital increase, another staple part of the recapitalisation program is the extension of the company’s existing bank credit facilities, which it has now also agreed to. A three-year extension of the maturity of a CHF 30 million loan has been agreed as part of the deal, as well as a three-year extension of the maturity of a CHF 60 million guarantee facility.
These extensions are subject to the successful completion of the capital increase, but provided that is accomplished, this will represent the completion of the second element of Meyer Burger’s recapitalisation program. It comes at a positive time for the company, after posting promising Q3 financial results last month, with year over year increases in revenues and in its EBITDA.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.