SunPower slides after unveiling $41 mln convertible debt sale

Sunpower

22/04/2026 14:28

** Residential solar firm SunPower's SPWR.O shares down 7.1% in premarket trading to $1.05 after capital raise to pay down debt

** Orem, Utah-based SPWR says sold privately $41 mln 10% convertible notes due May 1, 2029

** Conversion price of $1.64 is 45% premium over stock's last sale of $1.13 on Tues, which leads to ~25 mln shares issuable upon conversion

** Co to use net offering proceeds for working cash and directly pay off $18.75 mln in debt

** Also, other investors to exchange their 7% notes for stock, amounting to another $21.25 mln of cancelled debt, co says

** Chairman and CEO Thurman Rodgers bought $6 mln of the convertible notes, per the SEC filing

** SPWR has ~126.7 mln shares outstanding for roughly $140 mln market cap

** Through Tues close, stock down 28% YTD

** Two analysts rate the stock "buy" with PTs of $5.40 and $6, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))