SunPower announces closing of $400 Million senior convertible debentures

SunPower Corp. has announced that it has closed the previously announced private offering of $400 million aggregate principal amount of its 4.00% senior convertible debentures due 2023. In addition, the initial purchasers of the debentures have exercised their option to purchase an additional $25 million aggregate principal amount of debentures, which is expected to close on December 18, 2015, subject to customary closing conditions.

Total Energies Nouvelles Activites USA, a subsidiary of Total S.A. that owns approximately 57.5% of SunPower's outstanding common stock, purchased $100 million aggregate principal amount of the $400 million aggregate principal amount of the debentures included in this offering. Total's commitment will not change as a result of the initial purchasers election to exercise their right to purchase additional debentures.

SunPower intends to use the net proceeds from the offering for general corporate purposes, including, but not limited to, pursuing its HoldCo and YieldCo strategies, capital expenditures, working capital, retirement of existing indebtedness and to fund potential acquisitions of complementary businesses. 

The debentures will pay interest semi-annually on January 15 and July 15 of each year, beginning on July 15, 2016, at a rate of 4.00% per annum, and will mature on January 15, 2023, unless earlier converted, redeemed or repurchased. The debentures will be convertible into shares of SunPower's common stock at any time based on an initial conversion rate of 32.7568 shares of SunPower's common stock per $1,000 principal amount of debentures.