By Rebecca Melvin
New York, June 6 – SunPower Corp. priced $400 million seven-year convertible senior debentures at par to yield 0.875% with an initial conversion premium of 42.5%, according to a syndicate source.
Pricing of the deal came toward the rich end of revised coupon talk of 0.75% to 1.25%, and at the revised fixed 42.5% premium point. Talk was tightened during marketing from 1.5% to 2% for the coupon and 40% to 45% for the premium.
Deutsche Bank Securities Inc. was active bookrunner with Credit Agricole Securities (USA) Inc., HSBC and Citigroup Global Markets Inc. also on the books.
The debentures were sold under Rule 144A and to Total Energies Nouvelles Activites USA, a subsidiary of Total SA that owns about 60% of SunPower’s common stock, and which purchased $250 million of the $400 million of debentures offered.
Proceeds are earmarked for general corporate purposes, including, retirement of existing debt, pursuing its HoldCo strategy, capital expenditures and working capital.
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: | $400 million
|
| Maturity: | June 1, 2021
|
| Bookrunners: | Deutsche Bank Securities Inc., Credit Agricole Securities (USA) Inc., HSBC and Citigroup Global Markets Inc.
|
| Coupon: | 0.875%
|
| Price: | Par
|
| Yield: | 0.875%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $48.76
|
| Conversion ratio: | 20.5071 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes, standard
|
| Price talk: | 0.75%-1.25%, up 42.5%, revised from 1.5%-2%, up 40%-45%
|
| Pricing date: | June 5
|
| Settlement: | June 11
|
| Stock symbol: | Nasdaq: SPWR
|
| Stock reference price: | $34.22 as of close June 5
|
| Distribution: | Rule 144A and to Total Energies Nouvelles Activites USA
|
| Market capitalization: | $4.47 billion
|
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