SunPower unit gets $377 million credit facility from three banks

By Marisa Wong

Madison, Wis., Oct. 23 – SunPower Corp.’s wholly owned subsidiary, Solar Star California XIII, LLC, entered into a roughly $377 million credit facility with Santander Bank, NA, Mizuho Bank, Ltd. and Credit Agricole CIB on Oct. 17, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility includes about $318 million in construction loan commitments and about $59 million in letter-of-credit commitments.

Principal and accrued interest on the construction loans are convertible into term loans following the end of the construction period.

The facility matures at the end of the seventh year following the term loan conversion, with semiannual principal payments computed on a 19-year amortization schedule and a balloon payment at maturity.

Generally, borrowings will bear interest at Libor plus an applicable margin. Exact pricing was not disclosed in the filing.

Solar Star entered into the facility in connection with the planned construction of the 135 MW Quinto Solar Energy Project in Merced County, Calif.

Loan proceeds will be used primarily to fund the construction of the project under a turnkey engineering, procurement and construction agreement between Solar Star and SunPower Corp., Systems, another wholly owned subsidiary of SunPower.

SunPower is a San Jose, Calif.-based provider of high-efficiency solar cells, solar panels and solar systems.

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