SunPower Announces Adjustments of Conversion Rates for Convertible Debentures

Rhea-AI Summary

SunPower (NASDAQ:SPWR) announced adjustments to the conversion rates for its Senior Convertible Debentures. Effective September 11, 2020, the conversion rate for the 2021 Debentures is now 25.1388 shares per $1,000 principal, translating to a conversion price of $39.78. For the 2023 Debentures, the new rate is 40.1552 shares per $1,000 principal, equivalent to a conversion price of $24.90. These changes reflect an increase from previous rates, aligning with the terms of the indentures governing the Debentures.

Positive

• Increased conversion rates indicate a more favorable scenario for investors holding the 2021 and 2023 Debentures.
• Conversion price adjustments suggest improved investor confidence in SunPower's stock performance.

Negative

• None.

SAN JOSE, Calif., Oct. 8, 2020 /PRNewswire/ -- SunPower (NASDAQ:SPWR), a leading solar technology and energy services provider, today announced new conversion rates for its 0.875% Senior Convertible Debentures due 2021 (CUSIP No. 867652 AJ8) (the "2021 Debentures") and its 4.000% Senior Convertible Debentures due 2023 (CUSIP No. 867652 AL3) (the "2023 Debentures" and, together with the 2021 Debentures, the "Debentures"). The rates were adjusted pursuant to the terms of the respective indentures governing the Debentures (the "Indentures"). 

Effective September 11, 2020, the new conversion rates are 25.1388 shares of SunPower's common stock per $1,000 principal amount of 2021 Debentures (equivalent to a conversion price of $39.78 per share) and 40.1552 shares of SunPower's common stock per $1,000 principal amount of 2023 Debentures (equivalent to a conversion price of $24.90 per share). 

The conversion rates were previously 20.5071 shares of SunPower's common stock per $1,000 principal amount of 2021 Debentures and 32.7568 shares of SunPower's common stock per $1,000 principal amount of 2023 Debentures.  Notice of the conversion rate adjustment was delivered to Wells Fargo Bank, National Association, the trustee, in accordance with the terms of the Indentures.

About SunPower
Headquartered in California's Silicon Valley, SunPower (NASDAQ:SPWR) is a leading Distributed Generation Storage and Energy Services provider in North America. SunPower offers the only solar + storage solution designed and warranted by one company that gives customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners, businesses, governments, schools and utilities. For more information, visit www.sunpower.com.

© 2020 SunPower Corporation. All Rights Reserved. SUNPOWER and the SUNPOWER logo are registered trademarks of SunPower Corporation in the U.S.

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SOURCE SunPower Corp.

FAQ

What are the new conversion rates for SunPower's 2021 Debentures?

The new conversion rate is 25.1388 shares per $1,000 principal, equivalent to a conversion price of $39.78.

What are the new conversion rates for SunPower's 2023 Debentures?

The new conversion rate is 40.1552 shares per $1,000 principal, equivalent to a conversion price of $24.90.

When did the new conversion rates for SunPower's debentures become effective?

The new conversion rates became effective on September 11, 2020.

Why were the conversion rates for SunPower's debentures adjusted?

The conversion rates were adjusted according to the terms of the indentures governing the debentures.