Plug Power raises $399 million, eliminates high-cost debt

Plug Power Inc. (NASDAQ: PLUG) completed a $431.25 million convertible notes offering, receiving net proceeds of approximately $399.4 million after fees and expenses, according to a company statement.

The hydrogen solutions company issued 6.75% convertible notes due 2033, with initial purchasers exercising their full option to buy an additional $56.25 million in notes beyond the base $375 million offering.

Plug Power used the proceeds to retire its remaining 15% debt, refinance 2026 convertible notes, and eliminate a first lien held by its former debt provider. The company said these actions reduce interest expenses and simplify its capital structure.

The new financing extends through an eight-year term with no required amortization, providing what the company describes as stable long-duration financing without near-term principal repayment obligations.

"This financing marks a major turning point for Plug," said CEO Andy Marsh. "With $399 million in new cash, the removal of the first lien, and reduced interest costs, Plug now has one of the strongest balance sheets in years."

The company stated that combined with a recently announced data center infrastructure agreement, it now has a fully funded business plan based on current operating expectations. Plug Power operates across hydrogen production, storage, delivery, and power generation, with manufacturing facilities and employees globally.

The company has deployed over 72,000 fuel cell systems and 275 fueling stations, with hydrogen production plants in Georgia, Tennessee, and Louisiana capable of producing 40 tons per day.

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