Meyer Burger secures USD 39.48 million bridge financing to stabilize business and provide liquidity runway as negotiations with DESRI and bondholders progress

Ad hoc announcement pursuant to Art. 53 LR
Thun, Switzerland – December 6, 2024

Meyer Burger secures USD 39.48 million bridge financing to stabilize business and provide liquidity runway as negotiations with DESRI and bondholders progress

• Meyer Burger has entered into a new secured bridge loan facility with certain existing bondholders in a committed amount of up to USD 39.48 million
• Bridge loan facility provides a stable platform, reflecting strong support from certain of Meyer Burger’s existing bondholders, and provides liquidity runway to finalize an agreement for a sustainable restructuring solution
• Meyer Burger is in advanced discussions with DESRI concerning a new offtake arrangement on updated terms from the original master supply agreement. Meyer Burger is aiming to reach a final agreement on the revised terms this month

Meyer Burger Technology AG (collectively with its subsidiaries, “Meyer Burger”) today announces signing of a new secured bridge loan facility (the “Facility”), which is expected to fund sufficient liquidity for Meyer Burger to reach definitive agreements with an ad hoc group of existing bondholders and DESRI, which would provide for a sustainable restructuring solution to stabilize Meyer Burger's financial position in the long term. Final agreement is targeted over the course of December.

"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.

Term of Facility

The Facility provides up to USD 39.48 million to be drawn in multiple tranches upon the satisfaction of certain milestones. The cash received under the Facility, if received in full, creates expected cash runway intended to fund the business while the company negotiates a definitive agreement among DESRI, certain existing bondholders and other relevant parties, with the aim of achieving a sustainable financing and capital structure for Meyer Burger. The maturity date of the Facility is January 17, 2025. The initial tranche of USD 19.7 million is expected to be drawn immediately.

Drawdowns under the remaining tranches are conditional upon additional milestones having been met. The Facility is subject to certain fees, including an exit fee, as well as certain other conditions and covenants. The lenders under the Facility consist of 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 bondholders in Meyer Burger.

DESRI update

As previously announced on November 15, 2024, Meyer Burger has received a letter from DESRI purporting to terminate the master agreement with Meyer Burger with immediate effect. Since then, Meyer Burger, supported by the ad hoc group of bondholders, have engaged in constructive discussions with DESRI regarding terms of a new agreement. An updated agreement, if executed, is expected to take into account changes to Meyer Burger's financial and operational position and is expected to be finalized in the course of December. Additional drawdown of the Facility is linked to a successful agreement with DESRI.

Franz Richter said: "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. We look forward to fully ramping up our production lines in Goodyear and delivering our high performance modules to the solar power plant segment."

Appointment of restructuring advisor

Meyer Burger has appointed Alvarez & Marsal as restructuring advisor to strengthen the company's focus on the ongoing operational transformation and efficiency improvements in the business.

Media contacts:

Meyer Burger Technology AG

Anne Schneider
Head Corporate Communications
M. +49 174 349 17 90
anne.schneider@meyerburger.com

Alexandre Müller
Investor Relations
M. +41 43 268 3231
alexandre.mueller@meyerburger.com

FORWARD LOOKING STATEMENTS:

This publication may contain specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect", "forecast", "project", "may", "could", "might", "will" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may result in a substantial divergence between the actual results, financial situation, development or performance of Meyer Burger Technology AG and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties, readers should not rely on forward-looking statements. Meyer Burger Technology AG assumes no responsibility to update forward-looking statements or to adapt them to future events or developments. Except as required by applicable law, Meyer Burger Technology AG has no intention or obligation to update, keep updated or revise this publication or any parts thereof following the date hereof.

IMPORTANT NOTICE:

This announcement is for informational purposes only and does not constitute and shall not, in any circumstances, constitute an offer to sell or the solicitation of an offer to buy any security in any jurisdiction and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.

This announcement is not an offer to sell or a solicitation of offers to purchase or subscribe for any securities. This announcement is not a prospectus within the meaning of the Swiss Financial Services Act and not a prospectus under any other applicable laws. Copies of this document may not be sent to jurisdictions, or distributed in or sent from jurisdictions, in which this is barred or prohibited by law. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy any securities, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.