April 5, 2010 (FinancialWire) — SunPower Corp. (NASDAQ: SPWRB), a Silicon Valley-based provider of solar cells, solar panels, and solar systems, said that it has closed an offering of $220 million aggregate principal amount of its 4.5% senior cash convertible debentures due 2015.

In connection with this offering, SunPower has granted the initial purchasers an option to purchase up to an additional $30 million aggregate principal amount of such debentures to cover overallotments for thirteen days after this closing.

SunPower plans to use the proceeds from the offering to replenish the cash reserves used in its acquisition of SunRay Renewable Energy, for working capital, capital expenditures and general corporate purposes, to pay the cost of the cash convertible debenture hedge and warrant transactions described below and, potentially, for the repayment of indebtedness.

The debentures will pay interest semi-annually on March 15 and September 15 beginning on September 15, 2010, at a rate of 4.5% per annum, and will mature on March 15, 2015. The debentures will be convertible only into cash, and not into shares of SunPower's common stock.

Prior to December 15, 2014, the debentures will be convertible only upon specified events and, thereafter, they will be convertible at any time, based on an initial conversion price of $22.53 per share of class A common stock. The debentures will not be convertible upon the satisfaction of customary market price trigger conditions until the first quarter of 2011.  

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