Plug Power Inc. and Generate Capital have agreed to increase its term loan facility and reduce the interest rate. The term facility will be increased by $100M and the interest rate will be reduced to 9.5% from 12% for the entire facility. Plug Power has drawn an incremental $50M, and an additional $50M of borrowing capacity is available to be drawn based on mutual agreement. The maturity of the loan has been extended to October 2025 from October 2022. The proceeds will be used to help fund the Company’s hydrogen expansion strategies as well as overall working capital given the growing pipeline of opportunities.
“We are pleased to continue to work and expand this facility with our longstanding partner, Generate Capital,” said Andy Marsh, CEO for Plug Power. “In addition, we are pleased with the reduction in the interest rate as Plug Power has continued to deliver revenue and EBITDA growth. We believe the continued reduction in our cost of capital is important to propel our growth and the growth of this industry. Plug Power and Generate Capital share a similar vision on building the hydrogen economy providing both economic and sustainable solutions.”
“Generate’s singular goal is to partner with the best companies rebuilding the world with the most affordable, reliable, resilient energy and resource solutions” said Jigar Shah, president and co-founder of Generate Capital. “Plug Power’s hydrogen fuel cells deliver proven productivity benefits to customers, in addition to helping its customers meet their sustainability objectives. That has made them a key player in the emerging global hydrogen economy.”
