Overview
- Shares traded around $1.85 on Friday, leaving the stock roughly 8% lower over the past week following the financing announcement.
- The offering consists of $375 million in convertible notes due 2033 with a 6.75% coupon and a $3 conversion price, plus an option for initial purchasers to buy an additional $56.25 million.
- Plug expects to use about $243 million to retire 15% secured debentures and repurchase a portion of its 7% 2026 convertible notes while adding to working capital.
- The company estimates roughly $20 million in annual interest savings from the refinancing and says moving to unsecured debt frees assets previously pledged as collateral.
- JPMorgan maintained a Neutral rating and flagged dilution risk if shares move above $3, while Plug reiterated targets for margin expansion in 2025 and positive EBITDA by the end of 2026; recent Q3 results showed a $139 million loss with about $166 million in cash and nearly $1 billion in debt.