Plug Power plunges after $375 mln convertible bond sale

Plug Power

19/11/2025 11:56

** Plug Power's PLUG.O shares down 16.8% premarket to $1.78, a two-month low, after
    hydrogen fuel cell maker raises capital to refinance debt

    ** Slingerlands, New York-based PLUG late Tues announced pricing private offering of $375 mln 6.75% 8-year convertible bonds (CBs) at 95% face value

    ** Initial conversion price set at $3, which is 40% above stock's last close of $2.14

** Co plans to use ~$246 mln of net proceeds to fully repay outstanding principal amount of its 15% secured debentures, and the related termination fee

** It expects to use ~$102 mln of proceeds and cash on hand to fund repurchase of ~$138 mln of its existing 7% CBs due 2026, among other purposes

** Through Tues close, PLUG shares shed 37% over the past month, leaving them up 0.5% YTD for $3 bln market cap

** On Oct 7, PLUG appointed insider Jose Luis Crespo as next CEO, succeeding longtime leader Andy Marsh

    ** Avg rating among 25 analysts is "hold" and median PT is $2.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))