SunPower announces new three-year, $350 million letter of credit facility

SAN JOSE, USA: SunPower Corp., a Silicon Valley-based provider of high efficiency solar cells, solar panels, and solar systems, has signed a new three-year letter of credit facility.

The new facility, which initially provides for a maximum issuance of $350 million in letters of credit but, at the agreement of the parties, may be increased to a maximum of $400 million, will replace the company's existing $250 million letter of credit facility and will be underwritten by a syndicate of banks that include Deutsche Bank, Bank of America Merrill Lynch, Citi, Credit Suisse, and Barclays Capital.

"SunPower's new letter of credit facility will further support our growing commercial, utility and power plant businesses in North America and Europe," said Dennis Arriola, CFO of SunPower Corp.

"This new facility gives us, initially, $100 million of additional letter of credit capacity, with the ability to add another $50 million, and improves our balance sheet flexibility by reducing our cash collateral requirement from 100 percent to 50 percent.

"We are also pleased that we have been able to arrange this facility with a syndicate of leading financial institutions and their support reflects confidence in our future growth as well as the bankability of our established technology."