SunPower Inc. has secured a $20 million Standby Equity Purchase Agreement (SEPA) with an affiliate of Yorkville Advisors Global. The agreement provides a pre‑paid equity advance that the company can draw on under predetermined conditions, with repayment structured as equity issuance, thereby offering a low‑cost backstop to its liquidity needs.
The SEPA is part of a broader liquidity strategy that also includes a $55 million equity line of credit from White Lion Capital and a planned $30 million equity offering. SunPower’s management has set a target of achieving permanent cash‑flow positivity by the fourth quarter of 2026 and has committed to maintaining a minimum $10 million cash balance each quarter.
CEO T.J. Rodgers emphasized that the SEPA will be used only as a backstop. “This is the second step in meeting our commitment to maintain a minimum of $10 million in cash every quarter going forward,” he said. “We expect to maintain non‑GAAP quarterly operating income profitability throughout 2026 during this transition.”
The company’s recent financial performance underscores the need for this liquidity. In the third quarter of 2025, SunPower recorded an additional $1.1 million in bad‑debt reserves, which lowered its non‑GAAP operating income. The company also emerged from a Chapter 11 filing in August 2024, with its assets acquired by Complete Solaria, further highlighting the importance of a robust cash position.
While the SEPA offers flexibility, the advance is repayable with equity, meaning that if drawn, it will dilute existing shareholders. The agreement’s terms include a $20 million pre‑paid advance, with the first $1.9 million funded on January 27 2026. Specific drawdown conditions are not publicly disclosed but are likely tied to cash balance thresholds and other liquidity metrics.
Strategically, the financing strengthens SunPower’s ability to focus on residential solar growth, particularly as it expands beyond California to mitigate NEM 3.0 headwinds. The structure provides flexibility without immediate interest costs, allowing the company to deploy capital where it can generate the highest return.
Additional context shows that SunPower has pursued multiple capital‑raising initiatives: a prior SEPA with YA II PN for $25 million in future equity purchases and $20 million in pre‑paid advances, a private placement with the Rodgers Massey Revocable Living Trust for convertible promissory notes, and the current SEPA. These efforts collectively aim to secure a stable cash flow foundation for the company’s long‑term strategy.
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