Sunpower to price $130 million 20-year convertibles Thursday, talked at 1.25%-1.75%, up 25%-30%

By Kenneth Lim

Boston, Jan. 29 - Sunpower Corp. plans to price $130 million of 20-year convertible senior unsecured notes on Thursday after the market closes, talked at a coupon of 1.25% to 1.75%, and an initial conversion premium of 25% to 30%.

The convertibles will be offered at par.

There is an over-allotment option for a further $19.5 million.

Lehman Brothers and Credit Suisse are the bookrunners of the registered off-the-shelf offering.

Sunpower is concurrently lending an unspecified number of shares of its common stock for a separate stock offering that will be used for a stock borrow facility.

The convertibles will be non-callable for the first five years and may be put in years five, 10 and 15.

There will be a contingent conversion hurdle at 125% of the conversion price.

Sunpower, a San Jose, Calif.-based maker of solar electric power products, said the proceeds of the deal will be used for general purposes.

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