From the company:
SunPower Corporation (Nasdaq: SPWRA; SPWRB), a Silicon Valley-based provider of high efficiency solar cells, solar panels, and solar systems, today announced that it intends to offer, subject to market and other conditions, $200 million aggregate principal amount of senior cash convertible debentures due 2015. In connection with this offering, SunPower intends to grant the initial purchasers an option to purchase up to an additional $30 million aggregate principal amount of such debentures to cover overallotments, if any. SunPower intends to use the proceeds from the offering to replenish cash reserves it expects to use in its acquisition of SunRay Renewable Energy, for working capital, capital expenditures and general corporate purposes, to pay the cost of the cash convertible debenture hedge and warrant transactions described below and, potentially, for the repayment of indebtedness. The sale of the debentures is subject to market and other customary conditions and is expected to close on April 1, 2010.
The debentures will pay interest semi-annually on March 15 and September 15 and mature on March 15, 2015. Prior to December 15, 2014, the debentures will be convertible only upon specified events and, thereafter, they will be convertible at any time. The debentures will not be convertible upon the satisfaction of customary market price trigger conditions until the first quarter of 2011. The debentures will be convertible only into cash, and not into shares of SunPower's common stock (or any other securities). Upon conversion, SunPower will deliver an amount of cash calculated by reference to the price of SunPower's class A common stock over the applicable observation period. In connection with the sale of the debentures, SunPower plans to enter into convertible debenture hedge and warrant transactions intended to reduce its potential exposure to cash payments upon conversion of the debentures.
The debentures are being offered in a private placement only to qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933 (the "Act"). The debentures have not been registered under the Act or any other state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state securities law.
This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the debentures. This press release is being issued pursuant to and in accordance with Rule 135c under the Act. Any offers of the debentures will be made only by means of a private offering memorandum. The debentures being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the applicable private offering memorandum....