We might be in the depths of winter, but investors have been feeling warm and fuzzy about SunPower(NASDAQ: SPWR) 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.
Should you invest $1,000 in SunPower right now?
Before you buy stock in SunPower, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and SunPower wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of December 18, 2023
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
