SAN JOSE, Calif., Oct 3, 2011 /PRNewswire-FirstCall/ -- SunPower
Corp. (NASDAQ: SPWRA, SPWRB) today announced that it has signed a
new two-year revolving credit facility. This multi-bank
syndicated facility, totaling $275
million, will be used for general corporate purposes
including the repayment of the company's $50
million revolving credit facility with Union Bank, N.A. and
its Euro 75 million revolving credit
facility with Societe Generale, Milan
Branch.
The company also announced today that it has entered into a new
standby letter of credit agreement with Deutsche Bank AG and
Deutsche Bank Trust Company Americas. This facility, which
provides for the issuance of $200
million in letters of credit, will be used to support the
company's utility-scale solar power plants. The new letter of
credit facility is in addition to the $771
million letter of credit facility entered into by the
company in August 2011.
"Our new revolving credit agreement reduces our overall cost of
capital, improves our balance sheet flexibility and liquidity, and
further demonstrates the value of our relationship with Total,"
said Dennis Arriola, SunPower
CFO. "Additionally, our new letter of credit facility will
further support our strong and growing commercial, utility and
power plant (UPP) businesses in North
America. However, the challenging market conditions continue
to impact our global residential and commercial business. As
a result, we will revise our 2011 revenue and earnings outlook on
our third quarter earnings conference call to be held on
November 3, 2011."
About SunPower
SunPower Corp. (NASDAQ: SPWRA, SPWRB) designs, manufactures and
delivers the highest efficiency, highest reliability solar panels
and systems available today. Residential, business, government and
utility customers rely on the company's quarter century of
experience and guaranteed performance to provide maximum return on
investment throughout the life of the solar system. Headquartered
in San Jose, Calif., SunPower has
offices in North America,
Europe, Australia and Asia. For more information, visit
www.SunPowercorp.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements that do not
represent historical facts and may be based on underlying
assumptions. The company uses words and phrases such as "will,"
"reduces," "improves," "growing," "outlook" and similar expressions
to identify forward-looking statements in this press release,
including forward-looking statements regarding: (a) lowering
cost of capital and improving balance sheet flexibility and
liquidity; (b) benefits from the relationship with Total; (c)
growing commercial and UPP businesses in North America and Europe;
and (d) the expected timing for the revised 2011 guidance.
Such forward-looking statements are based on information
available to the company as of the date of this release and involve
a number of risks and uncertainties, some beyond the company's
control, that could cause actual results to differ materially from
those anticipated by these forward-looking statements, including
risks and uncertainties such as: (i) our ability to
achieve the expected benefits from our relationship with Total,
including through the credit support agreement; (ii) the impact of
regulatory changes and the continuation of governmental and
related economic incentives promoting the use of solar power;
(iii) increasing competition in the industry and lower
average selling prices; (iv) general business and economic
conditions, including seasonality of the solar industry and growth
trends in the solar industry; (v) the company's ability to increase
or sustain its growth rate; (vi) the significant investment
required to construct power plants and the company's ability to
sell or otherwise monetize power plants; (vii) the availability of
financing arrangements for the company's utilities projects and the
company's customers; (viii) the company's liquidity, substantial
indebtedness, and its ability to obtain additional financing; (ix)
the company's visibility into 2011 revenue and earnings outlook;
and (x) other risks described in the company's Annual Report on
Form 10-K for the year ended January 2, 2011, Quarterly Reports on
Form 10-Q for the quarter ended July 3, 2011 and other filings with
the Securities and Exchange Commission. These forward-looking
statements should not be relied upon as representing the company's
views as of any subsequent date, and the company is under no
obligation to, and expressly disclaims any responsibility to,
update or alter its forward-looking statements, whether as a result
of new information, future events or otherwise.
SunPower is the registered trademark
of SunPower Corp. All other
trademarks are the property of their respective owners.
SOURCE SunPower Corp.