You are here

Sunpower to get US$70m follow-on investment from 2 existing Chinese private equity investors

SUNPOWER Group plans to raise US$70 million through the issue of a second tranche of convertible bonds to its two existing Chinese private equity investors.

DCP Capital Partners and CDH China Management Company will subscribe to US$70 million new convertible bonds due 2022, convertible into new shares at an initial conversion price of S$0.60 per share.

This is a 20 per cent premium to the bond holders' earlier investment in the first tranche of US$110 million convertible bonds last year, at an initial conversion price of S$0.50 per share.

Together with the second convertible bonds issue, Sunpower is also issuing the DCP and CDH warrants exercisable into an aggregate amount of US$30 million with an exercise price per share of S$0.70 if they are exercised by the end of 2019, or S$0.80 if exercised in 2020.

Market voices on:

The conversion price for all of Sunpower's convertible bonds can be adjusted downwards if it fails to meet certain performance targets.

Sunpower said that it is focused on building a sizable Green Investments portfolio of assets. Some US$146 million in equity has already been invested and committed in operating projects and projects under construction.

It plans to invest another US$245 million in pipeline projects, including all of the US$70 million from the new convertible bonds, which it expects to fully utilise in 2019.

Sunpower will call a special general meeting to approve the proposed transactions.

Sunpower called for its trading halt to be lifted on Wednesday morning.