By Evan Weinberger
New York - SunPower Corp. priced $200 million in senior convertible debentures due Aug. 1, 2027 with a 0.75% coupon and a 27.5% initial conversion premium Wednesday before market open.
The deal came in at the middle of coupon talk, which had been at 0.5% to 1% and at the rich end of initial conversion premium talk 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 and Co. are co-managers for the registered transaction.
There is a $25 million over-allotment option and the settlement date is July 31.
The debentures carry a conversion price of $82.2375 and a conversion ratio of 12.1599. There is a contingent conversion provision.
The debentures are callable beginning Aug. 1, 2010. There are put options on Aug. 1 of 2010, 2015, 2020 and 2025.
The issue of the debentures comes at the same time as the issue of 2.45 million shares of class A common stock valued at $64.50 per share. There is an over-allotment option of 245,000 shares, which was lowered from talk of a 367,500 stock over-allotment.
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.
Issuer: SunPower Corp.
Issue: Senior convertible debentures
Amount: $200 million
Greenshoe: $25 million
Maturity: Aug. 1, 2027
Coupon: 0.75%
Price: Par
Yield: 0.75%
Initial conversion premium: 27.5%
Conversion price: $82.2375
Conversion ratio: 12.1599
| Contingent conversion: | Yes
|
| Call: | Beginning Aug. 1, 2010
|
| Put: | Aug. 1 of 2010, 2015, 2020 and 2025
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Lehman Brothers
|
| Pricing date: | July 25, after close
|
| Settlement: | July 31
|
| Distribution: | Registered
|
| Talk: | 0.5%-1% coupon, 22.5%-27.5% conversion premium
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
