NEW YORK (TheStreet) -- Shares of SunPower Corp. (SPWR) are up 2.36% to $34.65 on Thursday after the company announced on Wednesday it closed $400 million in debt, selling $250 million of the convertible debentures to Total Energies Nouvelles Activities USA, a subsidiary of Total S.A. (TOT), Bloomberg reported.
The company, which operates in two business segments: the utility and power plants segment, and the residential and commercial segment, will use proceeds from the sale to further reduce its debt.
The debentures are convertible into common shares at any time at an initial rate of 20.51 shares for every $1,000 of debt, Bloomberg reported.
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TheStreet Ratings team rates SUNPOWER CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNPOWER CORP (SPWR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."