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Phoenix Solar Aktiengesellschaft: financing negotiations successfully concluded - restructuring well on the way

DGAP-News: Phoenix Solar Aktiengesellschaft / Key word(s):
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Phoenix Solar Aktiengesellschaft: financing negotiations successfully
concluded - restructuring well on the way

11.05.2012 / 13:21

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Phoenix Solar AG: financing negotiations successfully concluded -
restructuring well on track

  - Financing volume totalling EUR 132 million agreed with the syndicate
    banks with a term covering the period through to the end of March 2014

  - Restructuring plan largely implemented  

  - Preliminary figures: tumbling prices and write-downs impact revenues
    and results in the financial year 2011; share of international business
    rises to 57.2 percent

  - Outlook for the current and the next financial year

Sulzemoos 11 May 2012 / Phoenix Solar AG (ISIN DE000A0BVU93, Prime Standard
of the Frankfurt Stock Exchange) has successfully concluded negotiations on
a new financing package with a volume totalling EUR 132 million and a term
through to the end of March 2014. The centrepiece is a new syndicated loan
agreement signed today consisting of cash and guarantee facilities of a
total volume of around EUR 100 million with the existing banking syndicate
under the lead management of BayernLB. The financing volume fully covers
that required for operations in the context of planning through to 31 March
2014. Negotiations on refinancing became necessary as the negative business
development in the financial year 2011 meant that Phoenix Solar no longer
fulfilled the covenants of the previous syndicated loan agreement.

Restructuring plan largely implemented

The newly agreed financing volume was determined on the basis of a
restructuring plan drawn up together with external consultants and geared
to significantly optimising cost, organisation and risk structures and
processes. This plan has already been largely implemented. The downsizing
of around 60 percent envisaged for the workforce in Germany to a target
figure of approximately 130 employees has already reached an advanced stage
and is likely to be virtually completed by the end of the first half of
2012. The Group will then have around 230 employees worldwide (as per 31
December 2011: 409). As regards procurement,   negotiations conducted on an
existing long-term supply contract with a module manufacturer were
successfully concluded, resulting in considerably more flexible terms.
Future focus of the restructuring process will be on the ongoing
optimisation of internal processes and concerted measures to expand
international business. The business model with its twin pillars of solar