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SunPower Proposes Bonus Shares In lieu of Cash for the Next Two Interest Payments of 12% and 7% Notes

SunPower (Nasdaq: SPWR) plans to negotiate with certain holders of its 12% and 7% Convertible Senior Notes due 2029 to accept common stock of equal value plus bonus shares instead of cash interest.

(Moderate)

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

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SunPower (Nasdaq: SPWR) plans to negotiate with certain holders of its 12% and 7% Convertible Senior Notes due 2029 to accept common stock of equal value plus bonus shares instead of cash interest.

The proposal would cover cash interest due on July 1, 2026 and January 1, 2027 and is intended to support financial flexibility through Q3 2026. SunPower also highlights an incremental May 2026 investment by Fortis Capital in its 10% notes, which it says bolstered Q2 2026 cash. The announcement is not an offer or solicitation to buy or sell securities.

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Positive

  • Proposed stock-and-bonus-shares interest aims to preserve cash into Q3 2026
  • Fortis Capital incremental 10% notes investment bolstered Q2 2026 cash position

Negative

  • Interest may be paid in common stock rather than cash, increasing share issuance
  • Stock-in-lieu proposal remains subject to negotiations with noteholders
Argus Jun 3 session
+7.14% close to close Open Argus
Details

News Market Reaction – SPWR

On Jun 3, the first trading day after this news, SPWR closed 7.14% above the previous close.

Data tracked by StockTitan Argus for the Jun 3 session.

Key Figures

12% Convertible Notes: 12% coupon, due 2029 7% Convertible Notes: 7% coupon, due 2029 Interest date: July 1, 2026 +2 more
12% Convertible Notes
12% coupon, due 2029
Convertible Senior Notes targeted for stock-in-lieu interest offer
7% Convertible Notes
7% coupon, due 2029
Convertible Senior Notes targeted for stock-in-lieu interest offer
Interest date
July 1, 2026
First interest payment proposed to be settled in stock with bonus shares
Interest date
January 1, 2027
Second interest payment proposed to be settled in stock with bonus shares
10% notes
10% coupon
Incremental investment to the 10% notes in May 2026 cited by CEO

Historical Context

5 past events · Latest: May 29
5 events
  1. May 29

    Customer satisfaction update

    24h Move
    +2.9%

    Reported 90% NPS from Starbucks across 26 completed solar projects.

  2. May 26

    Project completion

    24h Move
    +0.9%

    Subsidiary completed 1.2 MW solar and storage project for Santa Clara University.

  3. May 22

    Additional funding round

    24h Move
    +4.7%

    Closed extra $5M private placement, lifting total recent debenture funding to $46M.

  4. May 12

    Earnings update

    24h Move
    -14.9%

    Q1 2026 revenue miss and operating loss alongside workforce reductions and cost cuts.

  5. Apr 28

    Debt reduction financing

    24h Move
    -0.9%

    Announced $41M private placement and $40M debt reduction, yet shares eased slightly.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible senior notes, cash interest
2 terms
convertible senior notes financial
"its 12% Convertible Senior Notes due 2029 and 7% Convertible Senior Notes due 2029"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
cash interest financial
"in lieu of cash interest for the cash interest otherwise payable on July 1, 2026"
Cash interest is the actual interest payment made in money rather than in additional securities or deferred claims; think of it as receiving a cash paycheck instead of extra stock. For investors, cash interest matters because it provides immediate income and affects a borrower’s cash flow and ability to cover other obligations, so it influences credit risk, yield from fixed‑income holdings, and short‑term liquidity decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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OREM, Utah, June 02, 2026 (GLOBE NEWSWIRE) -- SunPower Inc. (“SunPower,” the “Company,” or Nasdaq: “SPWR”), a solar technology, services, and installation company, today announced its intent to negotiate with certain holders of its 12% Convertible Senior Notes due 2029 and 7% Convertible Senior Notes due 2029 (collectively, the “Notes”) an offer to accept common stock of equal value with bonus shares in lieu of cash interest for the cash interest otherwise payable on July 1, 2026 and January 1, 2027.

SunPower CEO, T.J. Rodgers commented, “I want to thank all our employees and investors for their continued support of SunPower, and to give special thanks to Fortis Capital for the incremental investment to the 10% notes in May 2026, which fully bolstered our Q2 cash position. The current stock-in-lieu of interest transaction is intended to provide full financial flexibility throughout Q3’26.”

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities nor shall there be any sale of securities in any state or jurisdiction.

About SunPower
SunPower Inc. (Nasdaq: SPWR) is a leading residential solar services provider in North America. The Company’s digital platform and installation services support energy needs for customers wishing to make the transition to a more energy-efficient lifestyle. For more information visit www.sunpower.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events, and , you can identify forward-looking statements because they contain words such as “will,” “goal,” “prioritize,” “plan,” “target,” “expect,” “expected to,” “focus,” “forecast,” “look forward,” “opportunity,” “believe,” “estimate,” “continue,” “anticipate,” “could,” “forecast,” and “pursue” or the negative of these terms or similar expressions. Forward-looking statements represent SunPower’s current beliefs, estimates and assumptions only as of the date of this press release and information contained in this press release should not be relied upon as representing SunPower’s estimates as of any subsequent date. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to market risks, trends and conditions. These risks are not exhaustive. For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, readers should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 14, 2026, our quarterly reports on Form 10-Q filed with the SEC, and other documents that we have filed with, or will file with, the SEC. Such filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SunPower assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

The shares of SunPower common stock potentially issuable will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

Company Contact:
Sioban Hickie
VP Investor Relations
IR@sunpower.com
(801) 515-8727

Source: SunPower Inc.


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did SunPower (NASDAQ: SPWR) announce about its 12% and 7% notes on June 2, 2026?

SunPower announced plans to negotiate with certain holders of its 12% and 7% Convertible Senior Notes to accept common stock plus bonus shares instead of cash interest. According to SunPower, this would apply to upcoming interest payments due in 2026 and 2027.

Which SunPower SPWR note interest payments are targeted for stock and bonus shares instead of cash?

SunPower’s proposal covers cash interest otherwise payable on July 1, 2026 and January 1, 2027 for its 12% and 7% Convertible Senior Notes due 2029. According to SunPower, noteholders would receive common stock of equal value with additional bonus shares.

Why is SunPower proposing stock and bonus shares in lieu of cash interest on its SPWR notes?

SunPower stated that the stock-in-lieu of interest transaction is intended to provide full financial flexibility throughout Q3 2026. According to SunPower, preserving cash by using equity for interest payments supports its near-term liquidity position.

How does the Fortis Capital investment relate to SunPower’s SPWR interest payment proposal?

SunPower’s CEO highlighted Fortis Capital’s incremental investment in its 10% notes in May 2026, which he said fully bolstered Q2 cash. According to SunPower, the new stock-in-lieu transaction follows that investment to further support financial flexibility.

Is SunPower’s June 2, 2026 SPWR announcement an offer or solicitation to buy securities?

No, SunPower specified that the announcement is neither an offer to sell nor a solicitation to buy any securities. According to SunPower, no sale of securities will occur in any jurisdiction based solely on this press release.

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