Plug Power’s stock sinks on refinancing as company announces $375 million convertible senior notes offering
Plug Power, the hydrogen fuel-supply company and part-time meme stock, was sent plummeting after-hours last night on news of a private convertible notes offering and refinancing, with the stock still down more than 15% as of 5:25 a.m. ET.
The offering comes with a provision to be upsized, and the company expects the initial sale of the notes to close on November 21, raising ~$347 million after expenses and discounts (or approximately $399 million if the initial purchasers exercise their option to purchase additional notes in full). The new notes will accrue interest at a rate of 6.75% per year, and will mature in 2033, unless repurchased, redeemed, or converted earlier.
The offering will be used to clear older debts.
Per the press release, some $245.6 million of net proceeds will go towards paying off its 15% secured debentures, while the remaining $101.6 million will be combined with cash on hand to repurchase approximately $138 million worth of Plug Power’s 7.00% convertible senior notes due 2026.
The refinancing essentially swaps some debt paying 15% (and other debt paying 7% due in 2026), for some debt due 2033 with a lower interest rate. However, the deal naturally comes with the possibility of more dilution for shareholders, with the new notes convertible to equity at an initial conversion price of approximately $3.00 per share.
Sharp swings in PLUG are certainly nothing new — Sherwood colleague Luke Kawa has, at various points, described the company as having “the most interesting stock chart in the history of mankind.” This latest offering comes ~9 months after Plug Power’s CEO told Sherwood News that the company had been “spending a lot of time in the debt market” thinking about how to address issues while putting “a lot of focus on how we don’t dilute shareholders and how to minimize that dilution.”
Meme stock runs, modestly positive results, and buzz around how the AI boom could lift the business’s financials haven’t managed to prevent the stock from slipping into the red for the year all-told, down around 17% in 2025 so far.
The offering comes with a provision to be upsized, and the company expects the initial sale of the notes to close on November 21, raising ~$347 million after expenses and discounts (or approximately $399 million if the initial purchasers exercise their option to purchase additional notes in full). The new notes will accrue interest at a rate of 6.75% per year, and will mature in 2033, unless repurchased, redeemed, or converted earlier.
The offering will be used to clear older debts.
Per the press release, some $245.6 million of net proceeds will go towards paying off its 15% secured debentures, while the remaining $101.6 million will be combined with cash on hand to repurchase approximately $138 million worth of Plug Power’s 7.00% convertible senior notes due 2026.
The refinancing essentially swaps some debt paying 15% (and other debt paying 7% due in 2026), for some debt due 2033 with a lower interest rate. However, the deal naturally comes with the possibility of more dilution for shareholders, with the new notes convertible to equity at an initial conversion price of approximately $3.00 per share.
Sharp swings in PLUG are certainly nothing new — Sherwood colleague Luke Kawa has, at various points, described the company as having “the most interesting stock chart in the history of mankind.” This latest offering comes ~9 months after Plug Power’s CEO told Sherwood News that the company had been “spending a lot of time in the debt market” thinking about how to address issues while putting “a lot of focus on how we don’t dilute shareholders and how to minimize that dilution.”
Meme stock runs, modestly positive results, and buzz around how the AI boom could lift the business’s financials haven’t managed to prevent the stock from slipping into the red for the year all-told, down around 17% in 2025 so far.
