Struggling US solar rooftop installer RGS Energy has been successful in renewing a revolving line of credit with Silicon Valley Bank and existing loans with Riverside Fund III, division of the firms largest shareholder, Riverside Renewable Energy Investment.
Silicon Valley Bank is providing RGS Energy with a US$5 million revolving line of credit through March 15, 2016, while the amendments to the loans from Riverside extend US$3.15 million in loans through March 31, 2016.
“The extension of our line of credit and investor loans, coupled with our recently completed public offering, significantly strengthen our financial position,” said Dennis Lacey, CEO of RGS Energy. “This will allow us to focus on completing our restructuring and executing on our 2015 business plan to improve the efficiency and profitability of our business.”
RGS Energy had been forced to instigate a number restructuring actions in response to reporting continued losses in the fourth quarter of 2014.
The company raised proceeds of around US$3.5 million in a share offering in February with plans to issue further shares to raise a further US$7 million to improve liquidity and attempt to work on its existing project pipeline.