SUNation Energy Restructures $5.5 Million of Long-Term Debt, Improving Cash Flows and Enhancing Liquidity
SUNation Energy (NASDAQ: SUNE) has successfully restructured a $5.486 million Long Term Promissory Note from a November 2022 acquisition. The restructuring transforms the original one-time payment due in November 2025 into 36 monthly installments from June 2025 through May 2028.
The company also modified its unearned 2024 earnout terms through a new Senior Secured Contingent Note Instrument. The earnout payment will now be contingent on 2025's EBITDA exceeding 2024's performance, with payments spread over 24 months starting in 2026.
This restructuring initiative aims to improve the company's capital structure, enhance cash flows, and provide flexibility for long-term growth objectives. Management emphasizes this move will help shift focus to business performance rather than capital structure challenges.
SUNation Energy (NASDAQ: SUNE) ha ristrutturato con successo una cambiale a lungo termine da 5,486 milioni di dollari derivante da un'acquisizione di novembre 2022. La ristrutturazione trasforma il pagamento unico originariamente previsto per novembre 2025 in 36 rate mensili da giugno 2025 a maggio 2028.
L'azienda ha inoltre modificato i termini del pagamento condizionato non ancora maturato per il 2024 tramite un nuovo strumento di cambiale senior garantita e condizionata. Il pagamento sarà ora subordinato al superamento dell'EBITDA del 2025 rispetto a quello del 2024, con versamenti distribuiti su 24 mesi a partire dal 2026.
Questa iniziativa di ristrutturazione mira a migliorare la struttura del capitale, aumentare i flussi di cassa e offrire flessibilità per gli obiettivi di crescita a lungo termine. La direzione sottolinea che questa operazione aiuterà a spostare l'attenzione sulle performance operative piuttosto che sulle sfide legate alla struttura del capitale.
SUNation Energy (NASDAQ: SUNE) ha reestructurado con éxito un pagaré a largo plazo por 5,486 millones de dólares derivado de una adquisición de noviembre de 2022. La reestructuración convierte el pago único original previsto para noviembre de 2025 en 36 cuotas mensuales desde junio de 2025 hasta mayo de 2028.
La compañía también modificó los términos del pago contingente no devengado para 2024 mediante un nuevo instrumento de pagaré senior garantizado y contingente. El pago dependerá ahora de que el EBITDA de 2025 supere el desempeño de 2024, con pagos distribuidos en 24 meses a partir de 2026.
Esta iniciativa de reestructuración busca mejorar la estructura de capital, aumentar los flujos de efectivo y proporcionar flexibilidad para los objetivos de crecimiento a largo plazo. La dirección enfatiza que esta medida ayudará a centrar la atención en el desempeño del negocio en lugar de en los desafíos de la estructura de capital.
SUNation Energy (NASDAQ: SUNE)는 2022년 11월 인수 건과 관련된 548만 6천 달러 장기 약속어음을 성공적으로 재구성했습니다. 이번 재구성으로 원래 2025년 11월에 일시불로 지급할 예정이던 금액이 2025년 6월부터 2028년 5월까지 36개월 분할 납부로 변경되었습니다.
또한 회사는 2024년 미지급 성과보수 조건을 새로운 선순위 담보 조건부 약속어음으로 수정했습니다. 성과보수 지급은 2025년 EBITDA가 2024년 실적을 초과할 경우에만 이루어지며, 지급은 2026년부터 24개월에 걸쳐 분할 지급됩니다.
이번 재구성 조치는 회사의 자본 구조를 개선하고 현금 흐름을 강화하며 장기 성장 목표에 대한 유연성을 제공하는 데 목적이 있습니다. 경영진은 이 조치가 자본 구조 문제보다는 사업 성과에 집중하는 데 도움이 될 것이라고 강조했습니다.
SUNation Energy (NASDAQ : SUNE) a réussi à restructurer une reconnaissance de dette à long terme de 5,486 millions de dollars issue d'une acquisition de novembre 2022. Cette restructuration transforme le paiement unique initialement prévu en novembre 2025 en 36 échéances mensuelles de juin 2025 à mai 2028.
L'entreprise a également modifié les conditions de l'earnout non acquis pour 2024 via un nouvel instrument de reconnaissance de dette senior garantie conditionnelle. Le paiement de l'earnout dépendra désormais d'un EBITDA 2025 supérieur à la performance de 2024, avec des versements étalés sur 24 mois à partir de 2026.
Cette initiative de restructuration vise à améliorer la structure du capital de l'entreprise, renforcer les flux de trésorerie et offrir une flexibilité pour les objectifs de croissance à long terme. La direction souligne que cette mesure aidera à recentrer l'attention sur la performance opérationnelle plutôt que sur les défis liés à la structure du capital.
SUNation Energy (NASDAQ: SUNE) hat erfolgreich eine langfristige Schuldscheindarlehen in Höhe von 5,486 Millionen US-Dollar aus einer Übernahme im November 2022 umstrukturiert. Die Umstrukturierung wandelt die ursprünglich für November 2025 fällige Einmalzahlung in 36 monatliche Raten von Juni 2025 bis Mai 2028 um.
Das Unternehmen hat außerdem die Bedingungen für die noch nicht verdienten Earnout-Zahlungen 2024 durch ein neues besichertes und bedingtes Senior-Note-Instrument geändert. Die Earnout-Zahlungen sind nun abhängig davon, dass das EBITDA 2025 die Leistung von 2024 übertrifft, mit Zahlungen verteilt über 24 Monate ab 2026.
Diese Umstrukturierungsmaßnahme zielt darauf ab, die Kapitalstruktur des Unternehmens zu verbessern, den Cashflow zu steigern und Flexibilität für langfristige Wachstumsziele zu schaffen. Das Management betont, dass dieser Schritt helfen wird, den Fokus auf die Geschäftsleistung statt auf Herausforderungen der Kapitalstruktur zu verlagern.
- Debt restructuring improves cash flow management by spreading $5.5M payment over 36 months
- Extended payment timeline provides better financial flexibility through 2028
- Earnout payment terms renegotiated to be performance-based and spread over 24 months
- Reduced immediate financial pressure through elimination of one-time payment
- Company requires debt restructuring to manage existing obligations
- Extended debt payment period until 2028 indicates current liquidity constraints
- 2024 earnout payment delayed and made conditional on future performance
Insights
Debt restructuring extends SUNation's $5.5M payment timeline, improving near-term liquidity while maintaining total obligations.
SUNation Energy has restructured a
This restructuring provides two key financial benefits: improved cash flow management and enhanced liquidity. By converting a substantial one-time payment into smaller installments, SUNation has reduced near-term cash flow pressure while maintaining its commitment to creditors.
The company has also modified its earnout obligations through a new Senior Secured Contingent Note Instrument. The unearned 2024 earnout has been rescheduled and made contingent on performance metrics - specifically requiring 2025 EBITDA to exceed 2024 levels. If this performance criterion is met, the payment will be distributed over 24 months beginning in 2026.
This performance-contingent structure aligns payment obligations with demonstrated financial improvement, creating a more sustainable repayment framework. For a company with a market capitalization of approximately
Management frames this restructuring as part of a broader initiative to improve the company's capital structure, with CFO James Brennan noting it will provide "necessary flexibility" for executing long-term growth objectives. CEO Scott Maskin's statement about creating "an environment where SUNation's value can be based on its business performance" suggests a strategic shift toward operational focus rather than financial constraints.
RONKONKOMA, N.Y., April 24, 2025 (GLOBE NEWSWIRE) -- SUNation Energy, Inc. (Nasdaq: SUNE), a leading provider of sustainable solar energy and backup power solutions for households, businesses, and municipalities, today announced that it has amended the terms of a
Under the new terms of the Long-Term Note, as disclosed in our recent annual report on Form 10-K, the principal amount of the Note, previously due and payable as a one-time payment due in November 2025, together with all accrued and unpaid interest, has been extended and is to now due and payable in 36 monthly installments beginning in June 2025 through May 1, 2028.
“The restructuring of this Note is the latest in a series of restructuring and debt reduction initiatives designed to incrementally improve the Company’s capital structure, enhance cash flows, and provide the necessary flexibility to allow us to execute our long-term growth objectives,” said James Brennan, Chief Financial Officer. “We appreciate the efforts of our independent board members in helping to reach these new terms with the Note holders, as well as for their confidence in the Company’s long term growth prospects.”
In addition, under the terms of a newly created Senior Secured Contingent Note Instrument (the “Contingent Note”), payment of the unearned 2024 earnout has been rescheduled. In addition to certain other conditions set forth therein, it will now follow the earnout terms in the Contingent Note covering the 2024 and 2025 fiscal years. If 2025’s EBITDA is greater than that of 2024, then the earnout will have been earned, and it will be paid over a period of 24 months starting in 2026.
“One of our focus points has, and will continue to be, ensuring that our commitments are honored and any of our outstanding obligations are satisfied,” said Scott Maskin, Chief Executive Officer. “Commencing repayment of this Note is a significant step towards that goal. We are creating an environment where SUNation’s value can be based on its business performance, rather than exclusively by its previously costly and challenging capital structure.”
Copies of the amended and restated secured Long-Term Note and the Senior Secured Contingent Note Instrument, along with the accompanying Security Agreement, can be found as annexed exhibits to the Company’s most recent annual report on Form 10-K.
About SUNation Energy, Inc.
SUNation Energy, Inc. is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation, Hawaii Energy Connection, E-Gear) provide homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage, and grid services. SUNation Energy, Inc.’s largest markets include New York, Florida, and Hawaii, and the company operates in three (3) states.
Forward Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. While the Company believes its plans, intentions, and expectations reflected in those forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. For information about the factors that could cause such differences, please refer to the Company’s filings with the Securities and Exchange Commission, including, without limitation, the statements made under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in subsequent filings. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.
Safe Harbor Statement
Our prospects here at SUNation Energy Inc. are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, including, but not limited to, the risk that SUNation may not be able to enter into definitive agreements to commence these solar installations, and that the projects being contemplated will not generate the expected levels of energy or deliver the anticipated financial benefits. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.
Contacts:
Scott Maskin
Chief Executive Officer
+1 (631) 823-7131
smaskin@sunation.com
SUNation Energy Investor Relations
+1 (212) 836-9600
IR@sunation.com
FAQ
What are the new payment terms for SUNation Energy's $5.5M Long Term Note?
How will SUNE's 2024 earnout payment structure change under the new agreement?
What is the purpose of SUNation Energy's debt restructuring?
When will SUNE begin payments under the restructured debt agreement?
