SunPower Corp. today announced its proposal to offer $300 million aggregate principal amount of senior convertible debentures. It also stated that this offer will be subject to market conditions and other factors. The debentures will mature in June 2018.
Total Gas & Power USA, SAS, a subsidiary of French petroleum giant Total S.A., owns approximately 66% of SunPower. According to the company statement, it has agreed to purchase $200 million aggregate principal amount of the debentures.
The initial purchasers, which were not disclosed, have also agreed to sell to Total Gas & Power USA, SAS. But this offer will occur, assuming that the full $300 million aggregate principal amount is sold, the statement adds.
"The debentures are being offered in a private placement only to qualified institutional buyers, and to Total Gas & Power USA, SAS, which is an institutional accredited investor," the statement said.
Moreover, the offering price, interest rate, conversion rate, among other terms will be negotiated between SunPower and the initial debentures buyers. All offers will be made via confidential memorandums.
"The debentures will be convertible into shares of SunPower’s common stock, par value $0.001 per share," the statement said.
Finally, SunPower said in the statement that it intends to use these proceeds "for general corporate purposes" such as "redeeming or repurchasing some of its outstanding debentures and working capital".