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

|About: SunPower Corporation (SPWR)|By:, SA News Editor

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.