SunPower to price $175 million convertible debentures due 2027, talked at 0.5%-1% coupon, up 22.5%-27.5%

By Evan Weinberger

New York, July 19 - SunPower Corp. plans to price $175 million in senior convertible debentures due 2027. The bonds are talked at a coupon of 0.5% to 1% and an initial conversion premium of 22.5% to 27.5%.

Credit Suisse Securities (USA) LLC and Lehman Brothers are joint bookrunners and Deutsche Bank Securities, Morgan Stanley & Co. Inc. and Cowen & Co. are serving as co-managers of the debentures, which are scheduled to price July 25.

There is a $25 million over-allotment option.

The debentures are callable beginning Aug. 1, 2010. There are put options on Aug. 1 of 2010, 2015, 2020 and 2025.

The debentures will come to market at the same time as the sale of 2.45 million shares of class A common stock and the establishment of a new credit facility by SunPower. There is a 367,500 over-allotment option on the stock as well.

SunPower is a San Jose, Calif.-based maker of solar cells, solar panels and solar systems. The company intends to use the proceeds for general corporate purposes, including expansion of solar cell and panel manufacturing facilities, prepayments on raw materials purchases and investment in complementary businesses, technologies or joint ventures.

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