Plug Power Closes $525 Million Secured Credit Facility with Yorkville Advisors

Rhea-AI Summary

Plug Power (NASDAQ: PLUG) has successfully closed the initial tranche of a $525 million secured term loan facility with Yorkville Advisors. The company received an initial funding of $210 million and used part of it to retire $82.5 million in existing convertible debentures, which significantly reduces potential dilution by eliminating approximately 55 million associated underlying shares.

The new financing aims to enhance Plug's liquidity position and provide additional financial flexibility as the company continues to scale its green hydrogen network and work toward profitability. CEO Andy Marsh emphasized that this financing will support Plug's strategic priorities in 2025 and beyond. The company will provide more details during its Q1 2025 earnings call scheduled for May 12, 2025.

Positive

• Secured $525 million term loan facility with initial $210 million funding
• Reduced potential dilution by retiring $82.5 million in convertible debentures, eliminating ~55 million potential shares
• Enhanced liquidity position and financial flexibility

Negative

• Continued reliance on debt financing indicates ongoing cash needs
• Taking on additional secured debt could increase financial obligations and risks

Insights

Financial Analyst

Plug Power secured $525M credit facility, drew $210M initially, and reduced potential share dilution by retiring convertible debt.

Plug Power's new $525 million secured term loan facility with Yorkville Advisors represents a strategic refinancing maneuver with both positive and cautionary elements. The company has immediately accessed $210 million as the initial tranche, providing significant liquidity enhancement as it continues capital-intensive investments in its green hydrogen network.

A key benefit of this transaction is the retirement of $82.5 million in convertible debentures that had approximately 55 million potential underlying shares. By replacing this convertible debt with secured debt, Plug has effectively reduced the dilution risk for existing shareholders - a structural improvement to their capital stack that preserves equity ownership percentages.

The transaction timing just before Q1 2025 earnings suggests management wanted to proactively address liquidity concerns. The reference to "driving toward profitability" indicates the company remains in investment mode rather than currently generating positive earnings, making this capital infusion particularly important for ongoing operations.

While CEO Andy Marsh characterizes the terms as "favorable," the press release omits critical details including interest rates, maturity dates, and covenant restrictions. The secured nature of the facility means company assets are pledged as collateral, which typically yields better rates but constrains those assets. The structure as a term loan rather than a revolving facility suggests this is meant for longer-term capital needs rather than managing short-term cash flow volatility.

By drawing less than half the total facility initially, Plug appears to be staging its capital access, potentially aligning drawdowns with project milestones or capital deployment readiness - a prudent approach to debt management.

Plug to Hold First Quarter 2025 Earnings Call on May 12, 2025

SLINGERLANDS, N.Y., May 06, 2025 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions, today announced the initial closing of its previously announced $525 million secured term loan facility with Yorkville Advisors. The initial tranche in an aggregate principal amount of $210 million was drawn and funded. Commensurate with establishing this facility, the company has retired $82.5 million in aggregate principal of the existing convertible debenture with Yorkville Advisors, which had approximately 55 million associated underlying shares given the conversion price, and therefore this refinancing has reduced potential dilution. The transaction enhances Plug’s liquidity position and provides the company with additional financial flexibility as it continues to scale its green hydrogen network and drive toward profitability.

“This financing provides meaningful capital to support Plug’s strategic priorities in 2025 and beyond,” said Andy Marsh, CEO of Plug. “We appreciate the confidence Yorkville has shown in our long-term vision and are pleased to have closed this deal under favorable terms for the company.”

Plug will provide further details during its upcoming first quarter 2025 earnings call.

Q1 2025 Earnings Conference Call Details:

Plug’s First Quarter 2025 results will be released on Monday, May 12, 2025.

Join the call

• Time: 4:30 pm ET
• Participant Dial-In: 877-407-9221 / +1 201-689-8597
• Webcast: https://event.webcasts.com/starthere.jsp?ei=1718659&tp_key=e4fec597b7
  

A live webcast will be available on the Plug Investor Relations website at https://www.ir.plugpower.com, and a playback will be available online for a period of time following the call.

About Plug Power
Plug is building the global hydrogen economy with a fully integrated ecosystem spanning production, storage, delivery, and power generation. A first mover in the industry, Plug provides electrolyzers, liquid hydrogen, fuel cell systems, storage tanks, and fueling infrastructure to industries such as material handling, industrial applications, and energy producers—advancing energy independence and decarbonization at scale.

With electrolyzers deployed across five continents, Plug leads in hydrogen production, delivering large-scale projects that redefine industrial power. The company has deployed over 70,000 fuel cell systems and 250 fueling stations and is the largest user of liquid hydrogen. Plug is rapidly expanding its generation network to ensure reliable, domestically produced supply, with hydrogen plants currently operational in Georgia, Tennessee, and Louisiana, producing 39 tons per day.

With employees and state-of-the-art manufacturing facilities across the globe, Plug powers global leaders like Walmart, Amazon, Home Depot, BMW, and BP.

For more information, visit www.plugpower.com.

Forward-Looking Statements Disclaimer:
This press release includes certain “forward-looking statements” within the meaning of the federal securities laws. These statements include, but are not limited to, statements regarding the company’s liquidity position and financial capital and flexibility. These forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company’s control. The company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not limited to, the risks related to uncertainties related to market conditions and the successful execution of the company’s strategic priorities. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in the company’s filings and reports with the Securities and Exchange Commission (the “SEC”), including the Annual Report on Form 10-K for the year ended December 31, 2024, as well as other filings and reports that are filed by the company from time to time with the SEC. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date of this press release, and you should not place undue reliance on such statements. Except as required by law, the company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MEDIA CONTACT
Fatimah Nouilati – Allison
plugPR@allisonpr.com

FAQ

What is the size of Plug Power's new credit facility with Yorkville Advisors?

Plug Power secured a $525 million credit facility with Yorkville Advisors, with an initial tranche of $210 million already funded.

How much dilution was reduced through PLUG's debt refinancing?

The refinancing reduced potential dilution by retiring $82.5 million in convertible debentures, eliminating approximately 55 million associated underlying shares.

When will Plug Power (PLUG) report Q1 2025 earnings?

Plug Power will report its Q1 2025 earnings on Monday, May 12, 2025, at 4:30 pm ET.

What is the purpose of PLUG's new credit facility?

The credit facility aims to enhance Plug's liquidity position and provide financial flexibility as it scales its green hydrogen network and works toward profitability.