MUNICH, GERMANY / ACCESSWIRE / December 23, 2024 / Mynaric AG (NASDAQ:MYNA) (ISIN: US62857X1019) (FRA:M0YN) (ISIN: DE000A31C305) (the "Company") today entered into an amendment to its existing loan agreement with its U.S.-based lenders, which are funds affiliated with a U.S.-based global investment management firm, pursuant to which such lenders have agreed to provide a third bridge loan in the amount of USD 5.0 million. Such bridge loan is in addition to the USD 95 million originally provided under such loan agreement and the two bridge loans in the aggregate amount of USD 16.5 million that such lenders agreed to provide in October 2024 and November 2024.
As is the case for the existing USD 95 million term loans and the previous USD 16.5 million bridge loans, the new bridge loan will be guaranteed and secured by the Company and each of its subsidiaries and bear interest at a rate equal to the Term Secured Overnight Financing Rate (SOFR) for a 3-month tenor, subject to a 2% floor, plus a margin of 10% or, at the option of the borrower, a certain alternative base rate, subject to a 2% floor, plus a margin of 9%. The new bridge loan will mature on January 31, 2025.
In addition, the maturity date of the two existing USD 16.5 million bridge loans was extended and will now also be January 31, 2025.
The availability of the new bridge loan is subject to the satisfaction of certain conditions, including the delivery of an updated liquidity plan from the Company's independent restructuring expert showing that it is more likely than not that the Company and its subsidiaries will be able to pay their obligations when due during the period that the bridge loan is outstanding. The Company expects to satisfy this condition as well as all other necessary conditions, and have the bridge loan fully available and drawn as of today to meet immediate working capital needs.
The bridge loan can be terminated early if, among other things, the previously commissioned independent German restructuring expert provides notice on or prior to the maturity date of the bridge loan that it is no longer more likely than not that the Company is capable of being restructured.
Excluding the proceeds of its loans, as of December 20, 2024, the Company had cash and cash equivalents on hand of EUR 8.9 million, which the Company will also use to meet its on-going operational and working capital needs.
The provision that the Company made earlier this December for contingent liabilities resulting from guarantee obligations in the amount of all loans provided by the Lender outstanding, including interest and exit fee, remains in place.
The Company remains in negotiations with its Lender to provide additional capital needed to support the Company's production ramp and fund its on-going operations per the Company's restructuring plan. The Lender's willingness to provide additional funding remains contingent on the initiation of a financial reorganization under the German Corporate Stabilization and Restructuring Act (Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen ("StaRUG")). As of today, the Company considers it more likely than not that the Lender and the Company will agree on additional funding for financial restructuring and that the Company will apply for the initiation of StaRUG proceedings. If StaRUG proceedings are opened, this could result in shareholders losing part or all of their investment in the Company. If StaRUG proceedings are not opened, the Company would have to explore other financing opportunities that are currently not available or in sight.
About Mynaric
Mynaric (NASDAQ: MYNA) (FRA: M0YN) is leading the industrial revolution of laser communications by producing optical communications terminals for air, space and mobile applications. Laser communication networks provide connectivity from the sky, allowing for ultra-high data rates and secure, long-distance data transmission between moving objects for wireless terrestrial, mobility, airborne- and space-based applications. The company is headquartered in Munich, Germany, with additional locations in Los Angeles, California, and Washington, D.C. For more information, visit mynaric.com.
Forward-Looking Statement
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