Plug Power says current business plan ‘fully funded’ following financing

Plug Power (PLUG) announced the closing of the previously announced offering of $375M aggregate principal amount of 6.75% convertible notes due 2033, including the full exercise of the initial purchasers’ option to purchase an additional $56.25M aggregate principal amount of the notes, resulting in a total aggregate principal amount of $431.25M. Plug received total net proceeds from the offering of approximately $399.4M, after deducting the initial purchasers’ discount and estimated offering expenses. The proceeds allow Plug to retire all remaining high-cost 15% debt, refinance its 2026 convertible notes, and eliminate the first lien previously held by its former debt provider. These actions significantly reduce interest expense, simplify Plug’s capital structure, and enhance financial flexibility. The refinancing also extends Plug’s lower cost of capital through an eight-year tenor balloon note, providing stable, long-duration financing with no required amortization over that period. This structure preserves liquidity and eliminates near-term principal repayment pressure. Together with Plug’s recently announced data center infrastructure agreement, the company now has a fully funded business plan based on its current operating expectations. “This financing marks a major turning point for Plug,” said Andy Marsh, CEO of Plug Power. “With $399M in new cash, the removal of the first lien, and reduced interest costs, Plug now has one of the strongest balance sheets in years. Extending our lower cost of capital over an eight-year tenor further enhances our flexibility. We are well positioned to support sales growth in both material handling and electrolyzers as customer demand accelerates.” Plug said it already has the manufacturing capacity required to meet its growth trajectory. The strengthened balance sheet provides the stability and flexibility needed to support commercial momentum across material handling fleets, distribution centers, and utility-scale electrolyzer deployments, Plug said.