Sunpower Group said yesterday it plans to raise US$70 million (S$94 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 Co will subscribe to US$70 million new convertible bonds due in 2022, convertible into new shares at an initial conversion price of 60 cents per share. This is a 20 per cent premium to the bond holders' investment in the first tranche of US$110 million convertible bonds last year, at an initial conversion price of 50 cents 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 70 cents if they are exercised by end-2019, or 80 cents 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 it is focused on building a sizeable green investments portfolio. Some US$146 million in equity has already been invested and committed. It plans to invest another US$245 million in pipeline projects, including all of the US$70 million from the new convertible bonds.
A special general meeting will be called to approve the proposed transactions, it said.
Sunpower called for its trading halt to be lifted yesterday morning.