Subsequent Events

6 Months Ended

Jun. 28, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTSOn July 17, 2020, Maxeon Solar issued $200.0 million aggregate principal amount of Notes pursuant to an indenture (the “Indenture”), dated July 17, 2020 between Maxeon Solar and Deutsche Bank Trust Company Americas, as trustee.

The Notes are senior, unsecured obligations of Maxeon Solar and will accrue regular interest at a rate of 6.50% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2021. Additional interest may accrue on the Notes in certain circumstances. The Notes will mature on July 15, 2025, unless earlier repurchased, redeemed or converted, and are subject to the terms and conditions set forth in the Indenture.

The Notes are not initially convertible. If the Spin-Off occurs within three months after July 17, 2020, and certain conditions relating to the physical delivery forward transaction described below are satisfied, then noteholders will have the right to convert their Notes into ordinary shares of Maxeon Solar in certain circumstances and during specified periods. The initial conversion price will be established following the Spin-Off, if it occurs, and will represent a premium of approximately 15.00% over the average of the volume-weighted average price per ordinary share of Maxeon Solar over the period (the “Note Valuation Period”) of 15 consecutive trading days beginning on, and including, the fifth trading day after the date on which Maxeon Solar’s ordinary shares are distributed to SunPower’s common stockholders in the Spin-Off and such ordinary shares begin to trade “regular way”. However, the initial conversion price will not be less than approximately $4.60 per ordinary share of Maxeon Solar. Maxeon Solar will settle conversions by paying or delivering, as applicable, cash, ordinary shares of Maxeon Solar or a combination of cash and ordinary shares of Maxeon Solar, at Maxeon Solar’s election.