By Rebecca Melvin
New York, May 23 - SunPower Corp. priced $300 million of five-year senior convertible debentures at par after the market close Wednesday to yield 0.75% with an initial conversion premium of 30%, according to a syndicate source.
Pricing came at the tight end of 0.75% to 1.25% yield talk and at the midpoint of the premium talk, which was 27.5% to 32.5%.
The Rule 144A deal was sold by joint bookrunners Deutsche Bank Securities Inc., RBS Securities Inc. and Credit Agricole Securities (USA) Inc.
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.
Proceeds will be used for general corporate purposes, including redeeming or repurchasing some of SunPower's outstanding debentures, and for working capital.
The debentures are non-callable with no puts and will be share settled only.
SunPower is a San Jose, Calif.-based provider of high-efficiency solar cells, solar panels and solar systems.
| Issuer: | SunPower Corp.
|
| Issue: | Convertible senior debentures
|
| Amount: | $300 million
|
| Maturity: | June 1, 2018
|
| Bookrunners: | Deutsche Bank Securities Inc., RBS Securities Inc., Credit Agricole Securities (USA) Inc.
|
| Co-managers: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc.
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $24.95
|
| Conversion ratio: | 40.0871 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | 0.75%-1.25%, up 27.5%-32.5%
|
| Pricing date: | May 22
|
| Settlement date: | May 29
|
| Stock symbol: | Nasdaq: SPWR
|
| Stock reference price: | $19.19
|
| Distribution: | Rule 144A
|
| Market capitalization: | $2.32 billion
|
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