Obtains $175
million of capital and $25
million of additional revolving debt capacity, long-term
waivers
Provides up to $155
million of additional liquidity
RICHMOND, Calif., Feb. 15,
2024 /PRNewswire/ -- SunPower Corp. (NASDAQ:
SPWR) (the "Company" or "SunPower"), a leading residential solar
technology and energy services company, today announced that it has
raised $175 million in capital
financing through a second lien term loan from Sol Holding, LLC ("Sol
Holding"), the Company's majority shareholder and an
indirect subsidiary of TotalEnergies and Global Infrastructure
Partners. The $175 million term loan
includes $45 million previously
funded to the Company in December and January, $80 million in new investment, and a $50 million second tranche that is available to
be borrowed upon the satisfaction of certain conditions. In
connection with the Second Lien Credit Agreement, the Company
agreed to issue penny warrants to Sol
Holding to purchase up to approximately 41.8 million shares
of the Company's common stock with an additional 33.4 million of
warrants issued if the $50 million
second tranche of the term loan is drawn. This funding positions
the Company to navigate current industry headwinds and further
reinforce its foundation for a more sustainable, resilient and
agile business.
The Company also obtained new long-term waivers from its
financial partners and entered into an amendment to its revolving
debt facility, which provides the Company with access to an
incremental $25 million commitment
for loans under its revolving debt capacity (subject to satisfying
conditions precedent to drawing). Together, these actions provide
the Company with up to $155 million
of additional liquidity.
"This transaction demonstrates the strong conviction of our
financial partners in the long-term value proposition of
residential solar, storage and renewable energy services, as well
as SunPower's ability to deliver operational excellence for our
customers," said Peter Faricy,
SunPower CEO. "With this injection of additional liquidity and
working capital to our balance sheet, coupled with substantial cost
reductions, SunPower is taking positive steps to position itself to
succeed in 2024 and beyond."
SunPower will discuss its full year and fourth quarter 2023
financial results on Thursday, Feb.
15 at 8 a.m. ET. Analysts
intending to participate in the Q&A session must register for a
personal link and dial-in at:
https://register.vevent.com/register/BI49f0f6c1dcda48db936395f3333e1574.
About SunPower
SunPower (NASDAQ: SPWR) is a leading residential solar, storage
and energy services provider in North
America. SunPower offers solar + storage solutions that give
customers control over electricity consumption and resiliency
during power outages while providing cost savings to homeowners.
For more information, visit www.sunpower.com.
Forward Looking Statements
This release includes information that constitutes
forward-looking statements. All statements, other than statements
of historical fact, are forward-looking statements for purposes of
the U.S. federal and state securities laws. Forward-looking
statements often address expected future business and financial
performance, and often contain words such as "believe," "expect,"
"anticipate," "intend," "plan," or "will" or the negative thereof
or other variations thereof or comparable terminology. By their
nature, forward-looking statements address matters that are subject
to risks and uncertainties. Any such forward-looking statements may
involve risk and uncertainties that could cause actual results to
differ materially from any future results encompassed within the
forward-looking statements. Examples of such forward-looking
statements include, but are not limited to, statements regarding
the Company's ability to navigate industry headwinds and the
Company's ability to build a more sustainable, resilient and agile
business. Factors that could cause or contribute to such
differences include, but are not limited to, the Company's ability
to obtain further waivers and consents under the Company's credit
facilities, and the timing and outcome thereof; the Company's
ability to comply with debt covenants or cure any defaults; the
Company's ability to repay our obligations as they come due; and
the risks and other important factors discussed under the caption
"Risk Factors" in the Company's Annual Report on Form 10-K/A for
the fiscal year ended January 1, 2023
and the Quarterly Report on Form 10-Q for the quarterly period
ended October 1, 2023, and the
Company's other filings with the SEC. The Company cautions you that
the list of important factors included in the Company's filings
with the SEC may not contain all of the material factors that are
important to you. In addition, in light of these risks and
uncertainties, the matters referred to in the forward-looking
statements contained in this press release may not in fact occur.
These forward-looking statements should not be relied upon as
representing the Company's views as of any subsequent date, and the
Company is under no obligation to, and expressly disclaims any
responsibility to, update or alter its forward-looking statements,
whether as a result of new information, future events, or
otherwise, except as required by applicable law.
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SOURCE SunPower Corp.