SunPower Corp. (NASDAQ:SPWR) announced on Thursday it has successfully secured $175 million in capital financing through a second lien term loan from its majority shareholder, Sol Holding, which is an indirect subsidiary of TotalEnergies and Global Infrastructure Partners.
Shares surged more than 18% in premarket trading.
This financing arrangement includes a breakdown of funds comprising $45 million that was already disbursed to SunPower in December and January, an additional $80 million in new funding, and a further $50 million available for borrowing under specific conditions.
As part of the agreement, the solar energy firm will issue penny warrants to Sol Holding, allowing for the purchase of approximately 41.8 million shares of SPWR’s common stock. An extra 33.4 million warrants will be issued if the company draws on the $50 million second portion of the term loan.
Furthermore, SunPower has also negotiated new long-term waivers with its financial partners and made amendments to its revolving debt facility.
These amendments include access to an additional $25 million in loans, enhancing the company's revolving debt capacity. Altogether, these strategic financial moves equip SunPower with up to $155 million in extra 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, the company’s 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."