UPDATE 2 - SunPower closes USD-400m debentures offering

US solar manufacturer and developer SunPower Corp (NASDAQ:SPWR) on Tuesday closed its USD-400-million (EUR 366m) private placement of senior convertible debentures due 2023.

The company said that the initial purchasers had made use of their right to buy an additional USD 25 million worth of debentures. This transaction is expected to close on December 18, 2015.

As previously announced, SunPower anticipates to use the 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.

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 purchased USD 100 million worth of the offered debentures.

These convertible units, maturing on January 15, 2023, will pay interest semi-annually on January 15 and July 15 of each year, starting on July 15, 2016. The rate is set at 4.00% per annum.

(USD 1.0 = EUR 0.915)

Choose your newsletter by Renewables Now. Join for free!