P. 1
Solyndra CRO Report Final

Solyndra CRO Report Final

|Views: 5.098|Likes:
Publicado porFortune

More info:

Published by: Fortune on Mar 27, 2012
Direitos Autorais:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/05/2012

pdf

text

original

As a result of the negotiations with Solyndra’s investors, the DOE, and other creditors,

the Restructuring of the company’s outstanding secured debt and raise of additional capital was

finalized on February 23, 2011. The Restructuring was an effort to consolidate operations,

reduce operating costs, obtain additional funding, and position the company to compete in the

deteriorating and challenging solar market. The effects of the Restructuring are summarized as

follows:

• The Fab 2, LLC entity was originally established for the specific purpose of
constructing and operating the Fab 2 facility. As a result of the Restructuring, the
parties required the name of the company to be changed to Solyndra LLC to facilitate
the consolidation of Fab 1 and Fab 2 operations and assets.

• The Restructuring required Solyndra, Inc. to change its name as a result of the
intellectual property being transferred to Solyndra LLC.287

• The company received a new $75 million loan from private investors with a
liquidation priority over other secured debt through March 2013;

• The assets of Solyndra, Inc. (including the Fab 1 assets and intellectual property)
were transferred to Solyndra LLC (resulting in the consolidation of Fab 1 and Fab 2
operations and assets) to secure the new Tranche A debt as well as the DOE Loan
Guarantee which was previously only secured by assets of Fab 2, LLC and did not
include liens on the intellectual property owned by Solyndra, Inc.;

• The existing DOE Loan Guarantee was split into two tranches: Tranche B debt and
Tranche D debt with Tranche B debt having a priority security interest in the assets of
the combined company;

• The Convertible Notes were exchanged for Tranche E debt,

• All preferred stock was converted to common equity;

• The DOE obtained the right to have an observer attend all board meetings of the
company and to receive all board materials;

• Existing intercompany project agreements under the original DOE Loan Guarantee
were terminated.

287

Pursuant to the Restructuring Solyndra, Inc. changed its name to 360 Degree Solar Holdings, Inc. on June 28,

2011.

128

The executed agreements between the parties called for a modification of the secured

debt structure to address, among other things, the additional funding requirements and revisions

to the security interests and collateral of the lenders. The principal amount committed of the

restructured secured debt by Tranche is as follows:

Table #1

Summary of Restructured Secured Debt

Secured Debt

Principal
Amount
Committed288

Tranche A

$75 Million

Tranche B

$150 Million

Tranche C289

Not Funded

Tranche D

$385 Million

Tranche E290

$186 Million

TOTAL

$796 Million

You're Reading a Free Preview

Descarregar
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->