Maxeon Solar Secures Liquidity with TZE Investment
- Maxeon Solar secures vital financial support from TZE, with a debt investment of USD 97.5 million and an equity investment of USD 100 million, to address liquidity needs and regain profitability.
Maxeon Solar Technologies Ltd has turned to its largest shareholder, TCL Zhonghuan Renewable Energy Technology Co Ltd (TZE), for financial support to address immediate liquidity needs. TZE has agreed to provide a debt investment of USD 97.5 million and an additional USD 100 million equity investment, subject to regulatory approvals. This move will result in TZE becoming a controlling shareholder and significant dilution for existing public investors.
To further bolster liquidity, Maxeon has reached an agreement with holders of USD 200 million convertible notes to exchange them for new bonds due in 2028. These bonds are convertible into equity, with USD 137.2 million set to be converted upon TZE's equity investment. The company reported a GAAP net loss of USD 80.1 million in the first quarter of 2024, a significant decline from the previous year's profit of USD 20.3 million.
CEO Bill Mulligan stated that these transactions are crucial for Maxeon to regain profitability. The company's financial performance in the first quarter, including declining revenue and shipments, underscores the need for immediate action to secure sufficient liquidity and ensure its long-term viability.
How is Maxeon Solar Technologies addressing liquidity needs with TZE's support?
- Maxeon Solar Technologies Ltd has secured a debt investment of USD 97.5 million and an additional USD 100 million equity investment from TCL Zhonghuan Renewable Energy Technology Co Ltd (TZE) to address immediate liquidity needs.
- TZE's financial support will result in them becoming a controlling shareholder and significant dilution for existing public investors.
- In addition to TZE's investment, Maxeon has reached an agreement with holders of USD 200 million convertible notes to exchange them for new bonds due in 2028.
- These new bonds are convertible into equity, with USD 137.2 million set to be converted upon TZE's equity investment.
- Maxeon reported a GAAP net loss of USD 80.1 million in the first quarter of 2024, a significant decline from the previous year's profit of USD 20.3 million.
- CEO Bill Mulligan emphasized that these transactions are crucial for Maxeon to regain profitability and ensure its long-term viability in the renewable energy sector.