SunPower -1.8% AH on convertible debt offering; Total to buy in

SunPower (SPWR) is offering $400M worth of convertible senior notes due June 2021.

Total (TOT), which owns 60% of SunPower, has committed to buying $250M of the notes.

Potential uses of the funds include capex, paying down existing debt, and pursuing SunPower's HoldCo strategy, under which the company is creating a solar project subsidiary that in turn could sell a stake (possibly through an IPO).

SunEdison announced a $500M convertible offering earlier today; the majority of its proceeds will go to the company's TerraForm Power (YieldCo) spinoff.

SunPower rose 7% in regular trading, thanks to the DOC's tariff announcement. The company had $900M in debt at the end of Q1, and $1.32B in cash/investments.

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Comments (3)
  • Market DJ
    , contributor
    Comments (1103) | Send Message
    I think this may be a good thing, meaning SPWR is already in a good financial position only because of TOTal, why not just make it official and refinance some more debt...?


    I am curious what other SA users think?
    5 Jun 2014, 01:22 AM Reply Like
  • cu_zane
    , contributor
    Comments (6) | Send Message
    I think SPWR is just a toe hold for TOT just in case solar power takes off. Call it solar exploration and production.


    I am long TOT.
    5 Jun 2014, 08:31 AM Reply Like
  • LongSIRI
    , contributor
    Comments (33) | Send Message
    It feels like this announcement is to keep the share price suppressed. Why? Because it doesn't benefit TOT to let SPWR run since they are in it for the long haul and perhaps eventually buy it out. That's the same issue with SIRI. TOT is planning to use SPWR as cash cow.
    5 Jun 2014, 10:46 AM Reply Like
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