SunPower to seek cash for shares lent to Lehman under 1.25% convertibles share lending agreement

By Angela McDaniels

Tacoma ,Wash., Oct. 6 - SunPower Corp. said it will file a claim for the cash value of the shares it loaned to Lehman Brothers International (Europe) Ltd. when it issued its $200 million 1.25% senior convertible debentures due 2027.

In addition, the lent shares will be listed as issued and outstanding starting on Sept. 15 - the date on which Lehman Brothers International began administration proceedings in connection with Lehman Brothers Holdings Inc.'s Chapter 11 bankruptcy - for the purpose of computing and reporting the company's basic and diluted weighted average shares and earnings per share.

Previously, the lent shares were not considered issued and outstanding for these purposes, according to an 8-K filing with the Securities and Exchange Commission.

The announcement follows a review by SunPower with its independent auditors and legal advisers of the circumstances of the Lehman bankruptcy.

When the convertibles were issued in February 2007, SunPower lent 2.9 million shares of its class A common stock to Lehman Brothers International. The lent shares were to be used by Lehman Brothers Inc., the underwriter in the offering, to allow investors to establish hedged positions in SunPower's class A common stock.

The San Jose, Calif.-based provider of solar-electric systems said it continues to closely monitor the Lehman bankruptcy and plans to defend its rights under the share lending agreement.

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