Mynaric Secures USD 5.5 Million Bridge Loan and Receipt of USD 5.5 Million Manufacturing Readiness Milestone Payment To Meet Immediate Working Capital Needs
MUNICH, GERMANY / ACCESSWIRE / October 2, 2024 / Today, Mynaric AG (NASDAQ:MYNA) (ISIN: US62857X1019) (FRA:M0YN) ISIN: DE000A31C305) (the "Company") entered into an amendment to its existing USD 95 million loan agreement with its U.S.-based lenders, which are funds affiliated with a U.S.-based global investment management firm, pursuant to which the lenders have agreed to provide a bridge loan in the amount of USD 5.5 million.
As is the case for the existing USD 95 million term loan agreement, the 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 bridge loan will mature on November 24, 2024.
The availability of the bridge loan is subject to the satisfaction of certain conditions, including the delivery of a 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 October 2, 2024. Shortly thereafter, the Company expects to draw the full amount of the bridge loan to meet immediate working capital needs as well as expenses for commissioning an independent German restructuring expert opinion confirming that the Company is capable of being restructured. This opinion must be delivered to the Company on or prior to the maturity date of the bridge loan. Based on this opinion, the lenders may extend an additional loan to the Company to address its additional capital needs. The bridge loan can be terminated early, among other things, if the restructuring expert provides notice that it is no longer more likely than not that the Company is capable of being restructured.
In addition, the Company achieved a key program milestone related to manufacturing readiness with one of its existing U.S.-based customers, resulting in a milestone payment in the amount of USD 5.5 million. This payment was a condition precedent to the loan agreement amendment referred to above. The payment was received on September 26, 2024 and will be used for working capital needs to support the production and delivery of optical communications terminals.
Excluding the USD 5.5 million related to the additional loan commitment, but including the program milestone payment, as of October 1, 2024, the Company had cash and cash equivalents on hand of EUR 7.8 million, which the Company will also use to meet its on-going operational and working capital needs.
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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