SunPower deal worse than bankruptcy filing for equity holders, says GLJ Research

After SunPower (SPWR) announced it has raised $175M in capital financing through a second lien term loan from Sol Holding, the company’s majority shareholder and an indirect subsidiary of TotalEnergies (TTE) and Global Infrastructure Partners, GLJ Research said the agreement is “actually WORSE than a bankruptcy filing for equity holders as they are effectively giving away the company to Total Energies to avoid having to file for bankruptcy.” The only positive is it buys SunPower more time, but the negative is “they are effectively giving away the company,” contends the analyst, who has a Sell rating on SunPower shares.