SunPower: Future of 1.25% convertibles share lending agreement with Lehman unknown

By Angela McDaniels

Tacoma ,Wash., Sept. 16 - SunPower Corp. said it is investigating the effects of Lehman Brothers Holdings Inc.'s Chapter 11 bankruptcy filing on the share lending agreement reached in connection with its $200 million 1.25% senior convertible debentures due 2027.

When the convertibles were issued in February 2007, SunPower lent 2.9 million shares of its class A common stock to Lehman Brothers International (Europe) Ltd. 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, according to a company news release.

Under the share lending agreement, the company can demand that the borrowed shares be returned in the event of a default.

The company said it is discussing the Lehman bankruptcy with its independent auditors and legal advisers and cannot provide any assurances at this point as to any legal or accounting ramifications for SunPower.

"We continue to closely monitor the situation relative to the Lehman bankruptcy and LBIE administration proceedings and intend to pursue all appropriate actions to defend our rights under the share lending agreement," the San Jose, Calif.-based provider of solar-electric systems said in the release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.