SunPower, a prominent player in residential solar technology and energy services, has announced a significant milestone in its financial strategy, raising $175 million in capital financing through a second lien term loan from Sol Holding.
Sol Holding, an indirect subsidiary of TotalEnergies and Global Infrastructure Partners, serves as SunPower’s majority shareholder.
The capital infusion comprises several components, including $45 million previously provided to the Company in December and January, an additional $80 million in fresh investment, and a $50 million second tranche available for borrowing upon fulfilling specific conditions.
As part of the Second Lien Credit Agreement, SunPower has agreed to issue penny warrants to Sol Holding, allowing the latter to purchase up to approximately 41.8 million shares of the company’s common stock. An additional 33.4 million warrants will be issued if the $50 million second tranche of the term loan is utilized.
The injection of funds positions SunPower strategically amidst prevailing industry challenges, reinforcing its groundwork for a more resilient, sustainable, and adaptable business model.
Moreover, SunPower has secured new long-term waivers from its financial partners and has amended its revolving debt facility. These measures grant the Company access to an incremental $25 million commitment for loans under its revolving debt capacity, subject to certain conditions. Together, these initiatives provide SunPower with up to $155 million in additional liquidity, enhancing its financial flexibility.
Peter Faricy, CEO of SunPower, expressed confidence in the Company’s trajectory, emphasizing the endorsement of its financial partners and its commitment to delivering operational excellence for customers.
He stated, “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.”
SunPower also said it added 16,000 customers in Q4 2023. SunPower added 75,900 new customers in 2023.
SunPower reported Q4 revenue of $357 million and 2023 revenue of $1.7 billion. SunPower reported Q4 Net Loss of $124 million and Adjusted EBITDA of ($68) million.