SunPower to sell $300 million five-year convertibles to yield 0.75%-1.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, May 22 - SunPower Corp. plans to sell $300 million of five-year senior convertible debentures that will be priced after the close of markets Wednesday and were talked to yield 0.75% to 1.25% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A deal was being sold via Deutsche Bank Securities Inc. as the bookrunner.

Total Gas & Power USA SAS, a subsidiary of Total SA that owns about 65% of SunPower's common stock and an institutional accredited investor, has agreed to purchase, and the initial purchasers have agreed to sell, $200 million principal amount of the debentures, assuming that the full $300 million principal amount is sold.

Proceeds will be used for general corporate purposes, which may include redeeming or repurchasing some of SunPower's outstanding debentures and working capital.

The debentures are not putable.

SunPower is a San Jose, Calif.-based provider of high-efficiency solar cells, solar panels and solar systems.

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