Maxeon Completes Out-of-Court Recapitalization and Restructuring

Paul, Weiss represented an ad hoc group of convertible noteholders in connection with an out-of-court recapitalization and restructuring of Maxeon Solar Technologies, Inc. Maxeon, one of the world’s leading global manufacturers and marketers of premium solar power technology, designs, manufactures and sells solar products in over 100 countries.

The transactions provided Maxeon with up to $197.5 million in new capital from Maxeon’s parent company through the issuance of $97.5 million of new first lien convertible notes and an additional $100 million equity investment, pending regulatory approval. In addition, the transactions restructured $405.5 million of existing indebtedness through a two-year maturity extension of $207 million of existing first lien convertible notes and an exchange of $198.5 million of existing unsecured convertible notes (including accrued interest) for a combination of $204 million in new second lien convertible notes and warrants for 9.925% of Maxeon’s equity.

The Paul, Weiss team was led by partners Robert Britton, Timothy Cruickshank and Suhan Shim, and included restructuring partner Jacob Adlerstein and counsel Douglas Keeton and Claudia Tobler; corporate counsel Lyudmila Bondarenko and Nathan Mitchell; tax partner Anne McGinnis; litigation partners John Carlin and William Clareman; and intellectual property partners John Patten and Claudine Meredith-Goujon and counsel Alex Zapalowski.