SunPower Prices $41M Convertible Notes with 10% Coupon, Cuts $40M Debt
SunPower priced $41 million of convertible notes due May 1, 2029, at a 10% coupon and 45% premium, with a $1.6385 conversion price. Proceeds retire $18.75 million of debt, while equity exchanges cancel $21.25 million of notes and convert $10 million of acquisition debt, cutting total debt by $40 million.
1. Offering Terms
SunPower has issued $41 million of convertible senior secured notes due May 1, 2029, carrying a 10% annual coupon. The notes convert at $1.6385 per share, implying a 45% premium to the $1.13 closing price and equate to 25,022,887 potential new shares.
2. Debt Reduction and Use of Proceeds
Net proceeds will retire $18.75 million of outstanding debt. In addition, holders of 7% notes agreed to equity exchanges canceling $21.25 million, and $10 million of acquisition-related debt was converted into the new notes, delivering total debt reduction of $40 million.
3. Insider and Strategic Investments
SunPower’s CEO personally invested $6 million in the financing, and the former Sunder owners converted $10 million of M&A debt into the new notes. This insider support underscores confidence in the company’s growth trajectory and reinforces alignment with long-term shareholders.