UPDATED: PV energy provider (PVEP), SunPower, is to raise US$300 million to pay down some of its outstanding debentures and use the proceeds for working capital requirements.
Total Gas & Power USA, SAS, a subsidiary of Total S.A. and majority owner of SunPower is expected to purchase US$200 million of the senior convertible debentures.
SunPower announced seperately that the debentures would pay interest semi-annually on June 1 and December 1 of each year, beginning on December 1, 2013, at a rate of 0.75% per annum.
The note is to mature on June 1, 2018 and could be converted into shares of SunPower's common stock at any time based on an initial conversion rate of 40.0871 shares of common stock per $1,000 principal amount of debentures (which is equivalent to an initial conversion price of approximately US$24.95 per share of SunPower's common stock.
This represents a conversion premium of approximately 30% over the closing sale price of US$19.19 per share of SunPower's common stock on the NASDAQ Global Select Market on May 22, 2013.