We might be in the depths of winter, but investors have been feeling warm and fuzzy about SunPower (SPWR 5.79%) stock these past few trading days. Data compiled by S&P Global Market Intelligence reveal the solar company's share price glowed more than 8% brighter over the course of this week. SunPower's latest financing news was a major reason for the uptick.
SunPower was thrown a financial lifeline
At the end of November, SunPower announced a delay in delivering its latest set of quarterly financials to the Securities and Exchange Commission (SEC). This constituted a breach of a loan covenant with one of the solar power company's subsidiaries; as per agreements the subsidiary had signed, this was to force an "immediate acceleration" of a chunk of its debt.
After market hours last Friday, SunPower disclosed that it had entered into a new amendment to the loan and security agreement it signed with its creditor. Under the terms of this amendment, SunPower's subsidiary will receive a temporary waiver until Jan. 19, 2024, of that default and any other defaults that might arise from the delay.
While this doesn't put SunPower and its subsidiary entirely in the clear -- as those entities are still quite indebted (to the point that the company has issued an ominous "going concern" warning) -- it does stave off the immediate financial threat of an end-of-year default.
Better late than never
Meanwhile, happily, SunPower managed to file those quarterly figures with the SEC on Dec. 18. The following day, it received formal notification from the regulator that it had regained compliance with quarterly reporting requirements.
