SunPower subsidiary to issue €200 million senior notes to fund project

By Lisa Kerner

Charlotte, N.C., Oct. 25 - SunPower Corp. subsidiary Andromeda Finance Srl will issue two series of notes totaling €200 million to finance Andromeda PV Srl's development, construction, operation and maintenance of two photovoltaic solar power plants in Montalto di Castro, Italy, according to an 8-K filed with the Securities and Exchange Commission.

Moody's Investors Service assigned a provisional Aa2 rating to approximately €100 million of senior secured fixed-rate notes due 2028 (class A1 notes) to be issued by Andromeda Finance with a guarantee from the Italian export credit agency, SACE SpA, and a provisional Baa3 rating to the underlying obligations of the class A1 notes without the benefit of the guarantee, the filing said.

Moody's assigned a provisional Baa3 rating to the approximately €100 million senior secured fixed-rate notes due 2028 (class A2 notes) to be issued by Andromeda Finance and subscribed for by the European Investment Bank.

Additional financing for the project will come from a €200 million project loan from BNP Paribas SA and Societe Generale SA and a €22 million VAT facility from Societe Generale, the filing said.

SunPower, a San Jose, Calif., solar technology company, expects the financing and construction for the "Montalto 51" project to be completed by the end of 2010.

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