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SunPower Announces Closing of $400 Million Aggregate Principal Amount of its 0.875 Percent Senior Convertible Debentures due 2021

June 13, 2014



ENP Newswire - 13 June 2014

Release date- 12062014 - SAN JOSE, Calif. - SunPower Corp. (NASDAQ: SPWR) today announced that it has closed the previously announced private offering of $400 million aggregate principal amount of its 0.875 percent senior convertible debentures due 2021.

Total Energies Nouvelles Activites USA, a subsidiary of Total S.A. that owns approximately 60 percent of SunPower's outstanding common stock, purchased $250 million aggregate principal amount of the debentures included in this offering.

SunPower intends to use the net proceeds from the offering for general corporate purposes, including, but not limited to, retirement of existing indebtedness, pursuing its HoldCo strategy, capital expenditures and working capital.

The debentures will pay interest semi-annually on June 1 and December 1 of each year, beginning on December 1, 2014, at a rate of 0.875 percent per annum, and will mature on June 1, 2021, unless earlier converted, redeemed or repurchased.

The debentures will be convertible into shares of SunPower's common stock at any time based on an initial conversion rate of 20.5071 shares of SunPower's common stock per $1,000 principal amount of debentures, representing a conversion premium of approximately 42.5 percent over the closing sale price of $34.22 per share of SunPower's common stock on The NASDAQ Global Select Market on June 5, 2014.

The conversion rate (and the conversion price) will be subject to adjustment in certain circumstances. In addition, if a non-stock change of control fundamental change (as defined in the indenture governing the debentures) occurs, SunPower will be required to increase the conversion rate for any debentures converted in connection with such fundamental change.

If SunPower undergoes a fundamental change (as defined in the indenture) before the maturity date of the debentures, holders may require SunPower to repurchase all or a portion of their debentures at a cash repurchase price equal to 100 percent of the principal amount of the debentures, plus accrued and unpaid interest.

Furthermore, if SunPower undergoes a non-stock change of control fundamental change (as defined in the indenture) before the maturity date of the debentures, the debentures will be subject to redemption at SunPower's option, in whole but not in part, for a period of 30 calendar days following a repurchase date relating to the non-stock change of control fundamental change, at a cash redemption price equal to 100 percent of the principal amount of the debentures, plus accrued and unpaid interest. Otherwise, the debentures will not be redeemable at SunPower's option before the maturity date.

The debentures were offered and sold in a private placement only to qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933 (the 'Act'), and to Total Energies Nouvelles Activites USA, which is an institutional accredited investor pursuant to Regulation D under 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions.

The company uses words and phrases such as 'intends,' 'will,' 'may,' 'could,' 'expect,' 'potential,' and similar expressions to identify forward-looking statements in this press release, including forward-looking statements regarding the use of the net offering proceeds, SunPower's ability to make required interest and other payments on the debentures (including upon redemption or required repurchase), and the conversion terms of the debentures.

Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of risks and uncertainties, some beyond the company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) market conditions; (ii) potential fluctuations in the company's stock price; (iii) management's broad discretion over the use of the net proceeds of the offering; (iv) changes in U.S. generally accepted accounting principles or in their interpretation and (v) other risks described in the company's Annual Report on Form 10-K for the fiscal year ended December 29, 2013, and other filings with the Securities and Exchange Commission.

These forward-looking statements should not be relied upon as representing the company's views as of any subsequent date, and the company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Natalie Wymer

Senior Director

SunPower Corporate Communications

Tel: 001-408-457-2348

Email: Natalie.wymer@sunpowercorp.com


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Source: ENP Newswire


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