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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.

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.

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