SunPower Closes $400 Million in Debt as Total Unit Buys MajorityJustin Doom
SunPower Corp., the second-biggest U.S. solar manufacturer, sold most of a $400 million debt offering to a unit of Total SA, its largest shareholder.
Total Energies Nouvelles Activites USA bought $250 million of the convertible debentures, which carry a rate of 0.875 percent and will mature June 1, 2021, San Jose, California-based SunPower said today in a statement.
The company will use the proceeds for general corporate purposes including retiring existing debt. It didn’t identify other participants in the private offering.
The debentures are convertible at any time into common shares at an initial rate of 20.51 shares for every $1,000 of debt, a premium of almost 43 percent over SunPower’s closing price on June 5, the day after the offering was announced.
Total holds about 60 percent of SunPower’s shares, according to data compiled by Bloomberg. First Solar Inc. is the largest U.S. solar manufacturer.
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