SunPower Inc. (NASDAQ: SPWR) announced it raised $41 million through convertible senior secured notes and reduced its debt by $40 million through various transactions.

The solar technology company signed contracts for $41 million of convertible debentures that will close this week. The convertible notes carry a 10% coupon rate, mature on May 1, 2029, and are non-callable until maturity. The notes have a 45% conversion premium to the market closing price of $1.13, resulting in a conversion price of $1.6385 for up to 25,022,887 shares.

SunPower will use the proceeds for working capital and to pay off $18.75 million in existing debt. The company also arranged for investors to exchange $21.25 million of existing 7.0% notes for stock. Additionally, former owners of Sunder, a company SunPower previously acquired, converted $10 million of acquisition-related debt into the new convertible debenture.

The debt reduction transactions total $40 million across the three components: direct debt payoff, note exchanges, and debt-to-equity conversion.

Company leadership invested in the transaction, with one executive contributing $6 million personally and Sunder's management team investing $10 million by cancelling a portion of their acquisition debt.

The convertible debentures were offered only to qualified institutional buyers and accredited investors under private placement exemptions. The securities have not been registered under the Securities Act and cannot be publicly traded without registration or applicable exemptions.

The information is based on a company press release statement.