Meyer Burger’s plans to recapitalize appear to be going well, as late last week the company reported a successful follow-on offering, with 99.9% of the company’s 457 million new shares purchased as part of a follow-on offering.
Meyer Burger had offered existing shareholders to subscribe to five new shares at a price of CHF 0.36 per previous share. The remaining 594,000 new shares will be sold on the market, with trading to begin on December 20.
This nets Meyer Burger €153 million, which will allow it to reorganize its bond payments including paying off a CHF 130 million (€121 million) bond due in 2017. Meyer Burger has also proposed a change in the conditions of a CHF 100 million (€93 million) bond due 2020, and following approval by bondholders this must now be approved by the courts.
Over the last two years Meyer Burger has benefitted from a resurgence in PV equipment orders, and increased its sales 96% in the first nine months of 2016. However, this did not enable the company to return to profitability over this time period, with Meyer Burger losing €38 million during Q1-Q3 2016.