Real Goods cuts conversion price of $6.7 million 8% notes to $1.35

By Devika Patel

Knoxville, Tenn., Oct. 21 – Real Goods Solar, Inc. reduced the fixed conversion price of its $6.7 million convertible senior secured notes on Oct. 17, according to an 8-K filed Friday with the Securities and Exchange Commission. The 8% notes due April 1, 2019 were sold with warrants in a $10 million private placement on April 1.

The note now converts to stock at the fixed conversion price of $1.35 per share.

The note also converts 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 solar energy company is based in Louisville, Colo.

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