SunPower Inc. (NASDAQ:SPWR) has entered into a note purchase agreement for the issuance of additional 10.00% Convertible Senior Secured Notes due 2029, according to an SEC filing.
The notes mature on May 1, 2029, unless converted, redeemed, or repurchased earlier. Interest accrues at 10.00% per year, payable quarterly.
Holders may convert the notes into common stock at any time. The initial conversion rate is 610.3143 shares per $1,000 principal, representing a conversion price of approximately $1.64 per share. The stock currently trades at $1.07, making conversion uneconomical.
SunPower faces liquidity challenges with a current ratio of 0.71 and total debt of $169.8 million against a market cap of $156.5 million.
Notes are fully secured and guaranteed by Complete Solar, Inc. They were issued in a private placement under Section 4(a)(2) of the Securities Act.
