SunPower's 1.25% notes due 2027 to be convertible

By Julie A. Miller

Washington, June 23 - SunPower Corp. announced that its $200 million of 1.25% senior convertible notes due 2027 are convertible from June 30 through Sept. 28.

The notes became convertible because the company's stock traded at 125% of the conversion price for at least 20 out of 30 consecutive trading days during the quarter ended June 29, SunPower said in a news release.

However, since "the current market value of the debentures substantially exceeds the value holders would receive upon conversion if the class A common stock remains at current levels through the applicable 20 day observation period, SunPower believes that holders may not have a significant economic incentive to convert at this time," the company said.

The principal amount of any debentures surrendered for conversion will be settled in cash. Any amount above that will be paid in stock.

The stock price conversion test will not be met for SunPower's $225 million principal amount of 0.75% senior convertible debentures due 2027. The class A common stock closing price for at least 20 of the last 30 trading days of this quarter has not equaled or exceeded $102.80, which represents 125% of the conversion price for this series.

SunPower Corp., based in San Jose, Calif., designs and manufactures solar electric systems for residential, commercial and utility-scale power plant customers.

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