North Coast Solar Stocks

September 4, 2009

SunPower Amends Credit Pact With Wells Fargo

Filed under: SPWR — Tags: , , — Jason @ 8:33 am

NEW YORK -(Dow Jones)- SunPower Corp. (SPWRA, SPWRB) amended its credit agreement with Wells Fargo & Co. (WFC), increasing a collateralized letter of credit facility to $200 million from $150 million and removing an obligation to pledge an equity interest in one of its subsidiaries to secure part of the agreement.

According to a Securities and Exchange Commission filing, under the amended agreement, SunPower can request up to $200 million of collateralized letters of credit until March 27, 2014.

SunPower may also borrow up to $50 million under a revolving credit line and request Wells Fargo issue up to $50 million under a letters of credit sub-feature until March 27, 2010.

As of the end of last month, SunPower had $98.7 million from the collateralized letter of credit facility outstanding. The pact still requires the company to pay interest on outstanding borrowings and a fee for issued and outstanding letters of credit.

Sunpower may prepay the loans at any time; all loans issued under the pact expire no later than March 27, 2014.

The amendment removed an obligation by SunPower to pledge a 60% stake in its SunPower Systems Sarl subsidiary to secure up to $50 million in obligations under the credit pact.

SunPower shares closed Thursday at $25.79 and have not traded premarket.

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