SunPower has signed a three-year letter of credit facility, which initially provides for a maximum issuance of $350 million in letters of credit but, at the agreement of the parties, may be increased to a maximum of $400 million. The new credit line replaces the company’s existing $250 million facility and will be underwritten by a syndicate of banks, including Deutsche Bank, Bank of America Merrill Lynch, Citi, Credit Suisse, and Barclays Capital.
“SunPower’s new letter of credit facility will further support our growing commercial, utility, and power plant businesses in North America and Europe,” said Dennis Arriola, CFO of SunPower. “This new facility gives us, initially, $100 million of additional letter of credit capacity, with the ability to add another $50 million, and improves our balance sheet flexibility by reducing our cash collateral requirement from 100% to 50%.”
“We are also pleased that we have been able to arrange this facility with a syndicate of leading financial institutions, and their support reflects confidence in our future growth as well as the bankability of our established technology,” he added.