SunPower greenshoe lifts 4% seven-year convertibles to $425 million

By Susanna Moon

Chicago, Dec. 15 – SunPower Corp. said the underwriters fully exercised their $25 million over-allotment option on the company’s offering of 4% seven-year convertible senior debentures, bringing the total deal size to $425 million.

The greenshoe is expected to settle on Dec. 18, according to a company press release.

As previously announced, SunPower priced $400 million of the convertibles on Dec. 9 with a 32.5% initial conversion premium.

The issue 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%, as previously reported.

The Rule 144A deal, which was launched after the market close on Dec. 8, priced after the market close the following day via joint bookrunners Goldman Sachs & Co., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA Inc.

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.

Proceeds will be used for general corporate purposes.

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

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