Overview
- Plug Power priced $375 million of convertible senior notes due 2033 at a 6.75% coupon, selling the notes at 95% of face value with an option for an additional $56.25 million.
- Net proceeds of about $347.2 million will primarily repay $245.6 million of 15% secured debentures and help repurchase roughly $138 million of 7% notes due 2026 using $101.6 million plus $52.4 million in cash.
- The notes convert at roughly $3.00 per share (333.3333 shares per $1,000), implying potential issuance of about 125 million shares, a conversion price roughly 40% above the Nov. 18 close.
- Shares fell about 21% following the announcement as investors weighed dilution against reduced interest expense and extended maturities, with the notes ranking as general unsecured obligations.
- Closing is expected around Nov. 21, following recent warrant proceeds of roughly $370 million and a stated plan to unlock more than $275 million of liquidity, after a quarter with about $177 million in revenue and continued cash burn.