By Rebecca Melvin
New York, April 28 - SunPower Corp. priced an upsized $200 million of five-year convertibles after the close of markets Tuesday at par to yield 4.75% with an initial conversion premium of 20%, according to a syndicate source.
Initially the offering was talked at $175 million in size. There is a greenshoe of $30 million, which was upsized from $26.25 million.
The bonds priced at the midpoint of talk, which was 4.5% to 5% for the coupon and 17.5% to 22.5% for the initial conversion premium.
Concurrently, SunPower priced 9 million shares of common stock at $22.00 per share.
Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were joint bookrunners for the offerings.
The debentures will be senior unsecured obligations, which will be non-callable for life.
In connection with the convertibles offering, SunPower planned to enter into hedge and warrant transactions with affiliates of certain of the underwriters.
SunPower intends to use $20 million to $22 million of proceeds to pay the cost of the hedge and warrant transactions. Remaining proceeds are expected to be used for general corporate purposes, including working capital, capital expenditures and acquisitions or transactions.
SunPower may use a portion of proceeds to repurchase some of its outstanding 1.25% debentures or 0.75% debentures. Those from whom the company repurchases may have outstanding short hedge positions in its common stock relating to such debentures.
SunPower is a San Jose, Calif.-based maker of solar cells, solar panels and solar systems.
| Issuer: | SunPower Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million, upsized from $175 million
|
| Greenshoe: | $30 million, upsized from $26.25 million
|
| Maturity: | 2014
|
| Bookrunners: | Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 20%
|
| Price talk: | 4.5%-5%, up 17.5%-22.5%
|
| Call: | Non-callable for life
|
| Puts: | No puts
|
| Pricing date: | April 28, after the close
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: SPWRA
|
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