SunPower Announces Early Repayment of $30 Million California Enterprise Development Authority Loan

Rhea-AI Summary

SunPower (NASDAQ:SPWR) has successfully repaid its $30 million loan from the California Enterprise Development Authority, reflecting a strategic effort to strengthen its balance sheet. The company also plans to retire its outstanding 2021 convertible bonds in Q2. CFO Manavendra Sial indicated significant progress in shifting their residential sales model to systems sales, which is showing promising results. Additionally, SunPower anticipates that their effective cost of capital for residential leases and loans will drop below 6%, positioning them favorably amidst increasing customer demand for solar solutions.

Positive

• Successful repayment of $30 million loan enhances balance sheet strength.
• Plans to retire 2021 convertible bonds indicate financial prudence.
• Shift in residential sales model to systems sales shows strong initial success.
• Expected reduction in cost of capital for residential leases and loans to below 6%.

Negative

• None.

SAN JOSE, Calif., April 15, 2021 /PRNewswire/ -- SunPower (NASDAQ:SPWR) today announced that has repaid its $30 million, 8.5 percent fixed interest loan with the California Enterprise Development Authority (CEDA).   The company is also planning on retiring the balance of its outstanding 2021 convertible bond issue during the second quarter.

"The early repayment of our CEDA loan was the next step in our corporate plan to further delever our balance sheet and reflects the confidence we have in our long-term model," said Manavendra Sial, SunPower chief financial officer. "We are also making significant progress on a number of our strategic financing related initiatives including our efforts to shift our residential sales model to more systems sales which is showing strong initial success.  Given the progress on our initiatives and our improving balance sheet, we expect our effective cost of capital for residential leases and loans to now be below six percent.  Finally, we believe we remain well positioned to capitalize on continued customer demand for solar and storage systems given our industry leading solutions."

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.

Forward-Looking Statements 
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, plans to retire debt, including the balance of our 2021 convertible bonds, and planned timing thereof; our confidence in our long-term model; our expectations regarding future cost of capital; and our positioning for future success. These forward-looking statements are based on our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to competition in the solar and general energy industry and downward pressure on selling prices and wholesale energy pricing; regulatory changes and the availability of economic incentives promoting use of solar energy; and challenges in executing transactions key to our strategic plans. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent report on Form 10-K, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpower.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.

© 2021 SunPower Corporation. All Rights Reserved. SUNPOWER and the SUNPOWER logo are trademarks or registered trademarks of SunPower Corporation in the U.S. All other logos and trademarks are properties of their respective owners.

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SOURCE SunPower Corp.

FAQ

What financial move did SunPower announce on April 15, 2021?

SunPower announced the early repayment of a $30 million loan from the California Enterprise Development Authority.

What does SunPower plan to do with its 2021 convertible bonds?

SunPower plans to retire its outstanding 2021 convertible bonds during the second quarter of 2021.

What is SunPower's expected cost of capital for residential leases and loans?

SunPower expects its effective cost of capital for residential leases and loans to decrease to below 6%.

How is SunPower's residential sales model changing?

SunPower is shifting its residential sales model to more systems sales, which is showing strong initial success.

What benefits does SunPower's solar + storage solution offer?

SunPower's solar + storage solution provides customers with control over electricity consumption and resilience during power outages while offering cost savings.