SunPower Corp. on Tuesday said it had raised $400 million via a private offering of its 4% senior convertible debentures due 2023.
In addition, the initial purchasers of the debentures — including parent group Total S.A. — exercised options to purchase an additional $25 million aggregate principal amount of debentures, which is expected to close on Dec. 18.
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 in the offering.
SunPower said it plans to use the net proceeds from the offering for general corporate purposes, including pursuing its HoldCo and YieldCo strategies, capital expenditures, working capital, retirement of existing indebtedness and to fund potential acquisitions of complementary businesses. SunPower said it currently had no commitments or agreements for any specific acquisitions.
The debentures will pay interest semi-annually at a rate of 4% a year and are set to mature in 2023. 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 — equivalent to an initial conversion price of approximately $30.53 per share. That represents a conversion premium of approximately 32.5% over the closing sale price of $23.04 per share of SunPower stock on The NASDAQ Global Select Market on Dec. 9.