SunPower has accessed the USD 50 million second tranche of its USD 175 million second lien term loan, secured earlier this year from its majority owner Sol Holding LLC, the US residential solar company disclosed this week.
Tom Werner, Principal Executive Officer at SunPower, remarked, “In addition to this funding, in recent months, we have worked to reduce overall costs and increase the proportion of our costs that vary with changes in volume as we aim to build a more resilient business that can deliver consistent positive free cash flow in the future.”
The capital injection comes subsequent to SunPower's February financing endeavor, where it raised USD 175 million in capital through the second lien term loan from Sol Holding, jointly owned by affiliates of TotalEnergies SE and Global Infrastructure Partners. At the time, SunPower emphasized that the funding was vital for navigating prevailing industry challenges and fortifying its groundwork for a more sustainable, resilient, and adaptable business model.
In alignment with its strategic realignment, SunPower unveiled plans in April to streamline its operations and enhance cost-efficiency by reducing its workforce by approximately 1,000 employees and shuttering select direct sales divisions.
Following the drawdown of the second tranche, SunPower will issue warrants to Sol Holding enabling the purchase of up to approximately 33.4 million shares of common stock at an exercise price of USD 0.01 per share.
