| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for SunPower Corp. > News item |
SunPower obtains $100 million revolver, $100 million term loan
By Wendy Van Sickle
Columbus, Ohio, Sept. 15 – SunPower Corp. entered a five-year $100 million revolving credit facility and a five-year $100 million term loan with Bank of America, NA as administrative agent on Sept. 12, according to an 8-K filed with the Securities and Exchange Commission.
Both tranches are due Sept. 12, 2027, but a portion of the term loan is subject to a springing maturity on Sept. 12, 2024 if all or a portion of the company’s outstanding 2023 convertible notes have converted into equity interests. The portion of the term loan that is used to repay any 2023 convertibles that do not convert will continue to mature on Sept. 12, 2027.
The term loan may also be used to repay revolver borrowings previously drawn to repay 2023 convertibles and for general corporate and working capital purposes. The revolver may be used for general corporate and working capital purposes.
The revolver and term loan have a $100 million accordion feature.
Borrowings will bear interest at term SOFR plus 225 basis points to 325 bps, depending on SunPower’s total net leverage ratio. Term SOFR is subject to credit spread adjustments of 10 bps, 15 bps and 25 bps for one-, three- and six-month interest periods, respectively. A commitment fee of between 25 bps and 35 bps, depending on SunPower’s total net leverage ratio, is payable quarterly on the undrawn portion of the revolver.
The term loan requires quarterly principal payments after six months equal to 1.25% of the principal amount of all outstanding term loans that have been funded, with the balance due at maturity.
The borrower must comply with a total net leverage ratio of no more than 4.5 times; a consolidated interest coverage ratio of at least 1.75 times; a consolidated asset coverage ratio of at least 1.5 times; and a minimum liquidity of $100 million.
SunPower is a San Jose, Calif.-based provider of high-efficiency solar cells, solar panels and solar systems.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.