Convertible senior secured note sold in units with five-year warrants
By Devika Patel
Knoxville, Tenn., April 1 – Real Goods Solar, Inc. arranged a $10 million private placement of convertible senior secured notes on April 1, according to an 8-K filed Friday with the Securities and Exchange Commission.
The 8% notes are being sold in the form of units at $1.00 per unit, with each unit consisting of one $1.00 note and fractional warrants. The offering will issue warrants for a total of 4,979,460 shares.
The note converts to stock at the initial fixed conversion price of $0.7941 per share and also at the floating conversion price of the lower of 85% of the arithmetic average of the five lowest volume-weighted average prices of the stock during the 20 trading days preceding the conversion, 85% of the volume-weighted average price of the stock on the trading day preceding conversion and 85% of the volume-weighted average price of the stock on the conversion day. The conversion price has a floor of $0.25 per share. The note matures on April 1, 2019.
The five-year warrants are each exercisable at $0.828.
The strike price and fixed conversion price are 15% and 0.52% premiums to the March 31 closing share price of $0.72.
The solar energy company is based in Louisville, Colo.
| Issuer: | Real Goods Solar, Inc.
|
| Issue: | Units of a $1.00 convertible senior secured note and warrants
|
| Amount: | $10 million
|
| Price: | $1.00
|
| Maturity: | April 1, 2019
|
| Coupon: | 8%
|
| Conversion price: | $0.7941, the lower of 85% of the arithmetic average of the five lowest volume-weighted average prices of the stock during the 20 trading days preceding the conversion, 85% of the volume-weighted average price of the stock on the trading day preceding conversion and 85% of the volume-weighted average price of the stock on the conversion day, floor of $0.25
|
| Warrants: | Warrants for a total of 4,979,460 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.828
|
| Pricing date: | April 1
|
| Stock symbol: | Nasdaq: RGSE
|
| Stock price: | $0.72 at close March 31
|
| Market capitalization: | $8.73 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
