By Devika Patel
Knoxville, Tenn., April 2 – Real Goods Solar, Inc. negotiated a $5 million private placement of $5.75 million of series A 0% one-year senior secured convertible promissory notes and a placement of $5 million of one-year series B 0% senior secured convertible promissory notes on March 30, according to an 8-K filed with the Securities and Exchange Commission.
The notes initially convert to common stock at $1.2405 per share. The conversion price is a 26.58% premium to the March 29 closing share price of $0.98.
The investors also will receive series Q warrants for 9,270,457 shares, which are exercisable at $1.12 for five years. The strike price is a 14.29% premium to the March 29 closing share price.
The solar energy company is based in Louisville, Colo.
| Issuer: | Real Goods Solar, Inc.
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| Issue: | Senior secured convertible promissory notes
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| Amount: | $10.75 million
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| Maturity: | One year
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| Coupon: | 0%
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| Conversion price: | $1.2405
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| Conversion premium: | 26.58%
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| Call: | At 120 for first six months, then at 125
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| Warrants: | For 9,270,457 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.12
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| Pricing date: | March 30
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| Stock symbol: | Nasdaq: RGSE
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| Stock price: | $0.98 at close March 29
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| Market capitalization: | $9 million
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| Series A notes
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| Amount: | $5.75 million
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| Price: | $5 million (original issue discount of $750,000)
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| Series B notes
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| Amount: | $5 million
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| Price: | $5 million
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