SunPower Announces Triggering Event for Convertibility of $200M Senior Convertible Debentures Due 2027 (SPWR)

From the press release via EarthTimes:

SunPower Corporation
(Nasdaq: SPWR), a Silicon Valley-based manufacturer of high-efficiency solar
cells, solar panels and solar systems, today announced that the last reported
sale price of its class A common stock on at least 20 of the last 30 trading
days during the fiscal quarter ending September 28, 2008 has equaled or
exceeded $70.94, which represents 125% of the conversion price for one series
of its outstanding senior convertible debentures.  Accordingly, pursuant to
the terms of the indenture governing its $200 million aggregate principal
amount of 1.25% senior convertible debentures due 2027, the market price
conversion trigger has been satisfied and the debentures may be converted at
the holders' option during SunPower's fourth fiscal quarter ending
December 28, 2008.


Although the market value of the debentures relative to the value holders
would receive upon conversion has declined during the third fiscal quarter,
the current market value of the debentures remains in excess of the conversion
value.  Accordingly, if the market value of the debentures remains at these
levels, holders might not have an economic incentive to convert their
debentures.  The current capital market conditions, credit environment, and
the recent prohibition on "naked" short selling announced by the U.S.
Securities and Exchange Commission could, however, create incentives for
holders to convert their debentures that did not exist in prior quarters.


Pursuant to the terms of the indenture, the principal amount of any
debentures surrendered for conversion must be settled in cash.  To the extent
that the conversion obligation exceeds the principal amount of any debentures
converted, SunPower must satisfy the remaining conversion obligation of the
1.25% senior convertible debentures due 2027 in shares of its class A common
stock....