Mynaric Secures USD 11 Million Bridge Loan and Expects to Agree on an up to USD 9 Million Production Increase Incentive Agreement to Meet Immediate Working Capital Needs
MUNICH, GERMANY / ACCESSWIRE / November 15, 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 bridge loan in the amount of USD 11 million. Such bridge loan is in addition to the USD 95 million originally provided under such loan agreement and an initial bridge loan in the amount of USD 5.5 million that such lenders agreed to provide on October 2, 2024.
As is the case for the original USD 95 million term loans and the initial USD 5.5 million bridge loan, 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 December 30, 2024.
In addition, the maturity date of the initial USD 5.5 million bridge loan is being extended and will now also be December 30, 2024.
The availability of the new bridge loan is subject to the satisfaction of certain conditions, including the delivery of an updated liquidity plan from an 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 as of November 18, 2024. Shortly thereafter, the Company expects to draw the full amount of the bridge loan 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.
In addition, the Company expects to enter into a production increase incentive agreement with an undisclosed customer for up to USD 9 million based on the achievement of agreed upon milestones. Under the terms of this agreement, the Company would receive USD 4.3 million within 30 days upon execution of the agreement and the remaining funds if and only when specific shipment milestones are achieved over the next six months. The Company expects to execute the agreement by November 15, 2024.
Excluding the USD 11 million related to the additional loan commitment and the initial USD 4.3 million payment from the production increase incentive agreement, as of November 15, 2024, the Company had cash and cash equivalents on hand of EUR 3.8 million, which the Company will also use to meet its on-going operational and working capital needs. The Company continues to pursue other funding options to secure the additional capital needed to meet its on-going operational and working capital needs over the next 12 months.
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.
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