SunPower Draws $50M Loan Tranche

SunPower (NASDAQ: SPWR) has announced that it has drawn upon the $50 million second tranche of the $175 million second lien term loan from Sol Holding, LLC. This move is part of the company's efforts to further its business operations and execute its business plan. Sol Holding, which is majority-owned by affiliates of TotalEnergies SE and Global Infrastructure Partners, is the majority owner of SunPower’s common stock.

In conjunction with drawing upon the second tranche under the second lien term loan, SunPower has agreed to issue warrants to Sol Holding to purchase up to approximately 33.4 million shares of common stock at an exercise price of $0.01 per share.

SunPower's principal executive officer, Tom Werner, emphasized the continued support of the majority shareholders and the company's commitment to operating a financially sound business. He highlighted that, in addition to the funding, the company has worked to reduce overall costs and increase the proportion of costs that vary with changes in volume, with the aim of building a more resilient business that can deliver consistent positive free cash flow in the future.

SunPower also mentioned that it continues to work on finalizing its restated 2022 10-K, its 2023 10-K, and its first quarter 2024 10-Q filings.

The company, which is the highest-rated solar company in the U.S., has been providing customized, high-quality, renewable home energy solutions since 1985. SunPower aims to help more Americans gain energy independence through a curated selection of affordable products and flexible financing options, maintaining high product quality and reliability standards.

These moves reflect SunPower's strategic approach to securing funding, reducing costs, and working towards financial resilience to drive consistent positive free cash flow in the future. Following these announcements, the company's shares moved 2.1%, and are now trading at a price of $3.41. If you want to know more, read the company's complete 8-K report here.

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