Real Goods Solar sets estimated terms of planned IPO

Real Goods Solar Inc., which installs and services residential solar power systems, disclosed the proposed terms of its initial public offering in a Securities and Exchange Commission filing Thursday.

The Broomfield, Colo.-based company expects the offering to total 5 million shares and price between $10 and $12. Assuming a price of $11 per share, Real Goods expects to raise about $49.1 million after fees and expenses from the IPO.

Real Goods, which was founded in 1978, said it has installed more than 2,400 residential and small commercial solar energy systems. The company has also sold solar products to more than 30,000 customers.

For 2007, Real Goods reported profit of $102,000 on revenue of $18.9 million, compared with earnings of $250,000 and revenue of $16.8 million in 2006.

Including sales from Marin Solar and Carlson Solar, which Real Goods acquired in 2007, the company's net income would have been $491,000 on revenue of $32.7 million.

Real Goods plans to use $19.8 million of its net proceeds from the offering to repay its parent, lifestyle media company Gaiam Inc., for costs to acquire and expand its business. Real Goods also plans to use proceeds for working capital and general corporate purposes, which may include acquisitions.

After the IPO, Gaiam will own about 66.7 percent of Real Goods' outstanding shares, assuming Gaiam's Class B common stock is converted into Class A common stock.

Real Goods Chairman Jirka Rysavy is chairman and chief executive of Gaiam. Previously he founded office products and services company Corporate Express Inc.

Real Goods founder and CEO, John Schaeffer, is the author of a reference guide called the "Solar Living Sourcebook," which the company says has sold about 250,000 copies.

ThinkPanmure LLC is the lead underwriter. Canaccord Adams and Broadpoint Capital are also underwriting the offering.

The underwriters have an option to buy up to 750,000 additional Class A shares to cover any over-allotments.

Real Goods plans to list its shares on the Nasdaq Global Market under the symbol "RSOL."