SunPower plans $400 million seven-year convertibles to yield 1.5%-2%, up 40%-45%

By Rebecca Melvin

New York, June 4 - SunPower Corp. launched an offering of $400 million of seven-year convertible senior debentures that were seen pricing after the market close Thursday and were talked to yield 1.5% to 2% with an initial conversion premium of 40% to 45%, according to a syndicate source.

The debentures will be convertible into shares of SunPower's common stock.

Total Energies Nouvelles Activites USA, a subsidiary of Total SA that owns about 60% of SunPower's common stock, has agreed to purchase, and the initial purchasers have agreed to sell to Total Energies Nouvelles Activites USA, $250 million aggregate principal amount of the $400 million aggregate principal amount of debentures to be offered.

Proceeds will be used for general corporate purposes, including, retirement of existing debt, pursuing its HoldCo strategy, capital expenditures and working capital.

The debentures are being offered under Rule 144A and to Total Energies Nouvelles Activites USA.

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

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