Complete Solaria (NASDAQ:CSLR) stock is rocketing higher on Monday after the solar solutions company announced the elimination of some of its debt.
Complete Solaria notes that it has canceled $67.6 million in debt from private equity firms Carlyle and Kline Hill Partners. The company did so with a $10 million cash payment to Carlyle and an $8 million cash payment to Kline Hill Partners.
Complete Solaria notes that this debt cancelation was fueled by company CEO T.J. Rodgers. He purchased $18 million in convertible debenture security from Complete Solaria to provide it with the cash for the debt repayment.
Rodgers said the following about this in a press release.
“The latest good news is that on closing day, Sunday, June 30, after our private equity partners had studied the Company’s investor-friendly convertible debenture offering – which featured a 12% coupon and 50% conversion premium ($1.68 strike price) with no covenants or securitization terms – both of them found the convertible debenture terms compelling and agreed to re-invest the $18 million payment due them back into the Company.”
CSLR Stock Movement Today
Complete Solaria stock is seeing heavy trading on Monday alongside the debt repayment news. This has more than 90 million shares of the stock traded as of this writing. That’s well above its daily average trading volume of about 1.5 million shares.
CSLR stock is up 41.1% as of Monday morning. However, the stock is still down 84.4% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
