Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 34

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 34
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 the Transaction and these potential risks and has unanimously approved the Scheme of Arrangement and recommended that shareholders vote for the approval of the Scheme of Arrangement. Credit Agreement and Convertible Notes In connection with the Transaction, we expect that Penguin Solutions Cayman and its subsidiaries will enter into an amendment to the Credit Agreement (as defined herein) to provide for certain technical changes

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necessary to permit the consummation of the Transaction under the terms of the Credit Agreement. We also expect to enter into amendments to the indentures governing our Convertible Notes in
connection with the Transaction to, among other things, permit the consummation of the Transaction under the terms of the Convertible Notes and provide for the issuance of Penguin Solutions Delaware common stock rather than Penguin Solutions Cayman
ordinary shares upon conversion of the Convertible Notes.

Our Credit Agreement, the debt issued thereunder and our Convertible Notes will
remain outstanding, and Penguin Solutions Cayman and SMT will continue to be the co-borrowers under the Credit Agreement and Penguin Solutions Cayman will continue to be the issuer of our Convertible Notes.

No Appraisal Rights

Under Cayman
Islands law, none of the holders of the Penguin Solutions Cayman shares have any right to an appraisal of the value of their shares or payment for them in connection with the Transaction.

Accounting Treatment of the Transaction

Under U.S. GAAP, the Transaction represents a transaction between entities under common control. Assets and liabilities transferred between
entities under common control are accounted for at cost. Accordingly, the assets and liabilities of Penguin Solutions Delaware will be reflected at their historical carrying amounts of Penguin Solutions Cayman at the Completion Date.

Stock Exchange Listing

We intend to make
application so that, immediately following the Completion Date, the Penguin Solutions Delaware common stock (for which there is currently no established public trading market) will be listed on Nasdaq under the symbol “PENG,” the same
symbol under which the Penguin Solutions Cayman ordinary shares are currently listed. We do not currently intend to list the Penguin Solutions Delaware common stock on any other stock exchange. We do not currently intend to list the Penguin
Solutions Delaware convertible preferred stock on any stock exchange.

Required Vote

To be approved, the Scheme of Arrangement Proposal must receive the affirmative vote of at least 75% or more of the nominal value of the
Penguin Solutions Cayman ordinary shares and Penguin Solutions Cayman convertible preferred shares voted at the Scheme Meeting by the shareholders as of the Voting Record Time who are entitled to vote and