By Angela McDaniels
Tacoma, Wash., Dec. 9 – SunPower Corp. priced $400 million of 4% seven-year convertible senior debentures with a 32.5% initial conversion premium, according to a company news release.
The issue has a $25 million greenshoe and was upsized from $350 million.
The convertibles were talked to yield 3.5% to 4% with an initial conversion premium of 32.5% to 37.5%, according to market sources.
The Rule 144A deal, which was launched after the market close on Tuesday, priced after the market close on Wednesday via joint bookrunners Goldman Sachs & Co., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
The bonds will be stock settled only.
There is cash takeover protection via a conversion rate ratchet formula and dividend protection via a conversion rate adjustment.
As previously reported, Total Energies Nouvelles Activites USA, a subsidiary of Total SA, which owns about 57.5% of SunPower’s common stock, agreed to purchase $100 million of the convertibles. If the underwriters exercise the greenshoe, Total’s commitment will not change.
The company intends to use the proceeds for general corporate purposes.
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
|
| Greenshoe: | $25 million
|
| Maturity: | Jan. 15, 2023
|
| Bookrunners: | Goldman Sachs & Co., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $30.53
|
| Conversion ratio: | 32.7568
|
| Call option: | At par following a non-stock change of control fundamental change
|
| Price talk: | 3.5%-4%, up 32.5%-37.5%
|
| Pricing date: | Dec. 9
|
| Settlement: | Dec. 15
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: SPWR
|
| Stock reference price: | $23.04 at close Dec. 9
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
