Solar module by SunPower. Author: PSNH. License: Creative Commons, Attribution-NoDerivs 2.0 Generic
US solar manufacturer and developer SunPower Corp (NASDAQ:SPWR) said Tuesday it plans to sell USD 350 million (EUR 320.6m) worth of senior convertible debentures due January 2023.
The company will use the net proceeds for general corporate purposes, including for retiring existing indebtedness and for pursuing its HoldCo and YieldCo strategies. A portion of the sum could also be allocated for capital expenditures, working capital and to fund potential acquisitions of complementary businesses, according to the press release. SunPower pointed out that it currently has no commitments or agreements for any specific acquisitions.
Total Energies Nouvelles Activites USA, a unit of French oil and gas group Total SA (EPA:FP) that has a 57.5% stake in SunPower, has committed to buy USD 100 million worth of the offered debentures, assuming that at least USD 300 million are sold.
Each of the offered units will be convertible into company stock. SunPower may also grant the initial purchasers the option to buy as much as USD 52.5 million of additional debentures.
The interest rate, initial conversion rate and offering price, along with other terms, are yet to be negotiated. The private placement is subject to market conditions and other factors, the photovoltaics (PV) maker noted.