After a brief rally, the stock of Real Goods Solar, Inc. (NASDAQ:RGSE) traded lower in the last trading session. Investor’s took an optimistic view on the company after it announced the renewal of its revolving line of credit held with Silicon Valley Bank (SVB). Also, the company informed about renewal of loans with Riverside Fund III, L.P., which is an affiliate of the company’s largest shareholder, Riverside Renewable Energy Investment.
Strengthens financial position
Following the renewal, the company’s credit facility line of $5 million with SVB will extend through March 15, 2016. Also, the amendments to the loans will now extend the loan facility of $3.15 million with Riverside through March 31, 2016. On account of this development, Real Goods Solar, Inc. (NASDAQ:RGSE)’s CEO Dennis Lacey showed confidence in the company’s financial position.
He said that the renewal of both lines of credit and investor loans will boost the company’s financial strength. He added that the recent completion of public offering is yet evidence supporting the thought. Lacey went on to state that the extension of credit line and loans will help the company to focus on its restructuring plans. He said that the company could now concentrate on executing its 2015 business plan in order to take efficiency and profitability to a higher level.
Restructuring by Q1
The extension of credit line and loans holds great importance for Real Goods Solar, Inc. (NASDAQ:RGSE), which recently announced a complex stock offering and has decided to slash nearly 30% of its workforce. The pressure maintains on the company, which has issued a fourth-quarter warning. Real Goods Solar, Inc. (NASDAQ:RGSE) restructuring plans revolve around its California operations. It plans to replace field sales, warehouses, offices and construction teams there with higher utilization of call center e-Sales and its Authorized Integrator Program. The stock dipped by nearly 3% to $0.3051 yesterday as investors decided to wait for more positive news.