- Debt restructuring transforms a $5.5 million lump-sum payment into 36 monthly installments.
- Improved cash flow and liquidity expected to support long-term growth objectives.
- 2024 earnout now contingent on 2025 EBITDA performance, further distributed over 24 months.
SUNation Energy (SUNE, Financial) has announced a strategic restructuring of its financial obligations, effectively transforming a $5.486 million long-term promissory note. This note, originating from a November 2022 acquisition, was previously scheduled as a one-time payment in November 2025. Under the modified terms, the repayment will now occur through 36 monthly installments from June 2025 to May 2028, easing immediate cash flow pressures and increasing liquidity.
The restructuring includes a reconfiguration of the 2024 earnout payment terms. The new arrangement implements a Senior Secured Contingent Note, linking the earnout to performance metrics. Specifically, the payment is contingent on the 2025 EBITDA surpassing 2024 levels. If achieved, this payment will be spread over a 24-month period beginning in 2026, thus aligning financial obligations with demonstrated business performance improvements.
James Brennan, Chief Financial Officer of SUNation Energy, emphasized that this initiative is part of broader efforts to optimize the company's capital structure and facilitate long-term growth potential. CEO Scott Maskin highlighted the strategic refocus on business performance, aiming for the company's valuation to be driven by operational success rather than financial constraints.
