SunPower Corp. (NASDAQ: SPWRA, SPWRB) 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 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."