Benzinga | Apr 16, 2021 08:17AM EDT

Maxeon Raises $125M Via Secondary Equity Offering At 6.8% Discount

* Solar innovator Maxeon Solar Technologies Ltd (NASDAQ: MAXN) priced a $125 million secondary public offering at $18 per share to raise $117.1 million.

* The offer price signifies a 6.8% discount to the Thursday closing price of $19.31.

* The underwriters have a 30-day option to purchase additional shares up to $18.7 million.

* Maxeon also agreed to sell 1.87 million shares at $18 per share to a Tianjin Zhonghuan Semiconductor affiliate in a secondary private placement under an agreement dated Apr. 13, 2021.

* The joint offering proceeds will be utilized for general corporate purposes, including the funding of its previously announced Performance line expansion, production ramp-up, development of Maxeon 7, increasing manufacturing capacity for Maxeon 5 and 6, research, development, and other projects.

* Morgan Stanley and BofA Securities were the joint book-running managers for the offering.

* Maxeon held $206.7 million in cash and equivalents as of Jan. 3, 2021.

* Price action: MAXN shares traded higher by 2.02% at $19.70 in the premarket session on the last check Friday.