Plug Power Plunges 21% After $375M Convertible Notes Offering
Plug Power (PLUG) shares tumbled 21% in extended trading following the announcement of a $375 million convertible senior notes offering. The hydrogen fuel cell company's move, aimed at qualified institutional buyers under Rule 144A, carries a 6.75% interest rate and matures in 2033. Market reaction reflects concerns over shareholder dilution and the company's persistent cash burn.
The offering includes an option for the initial purchaser to acquire an additional $56.25 million in notes. Plug Power plans to allocate approximately $243 million of proceeds to retire its 15% secured debentures, with remaining funds earmarked for repurchasing existing 2026 notes and general corporate purposes. The stock has declined 37% over the past month as investors question the unprofitable company's financial trajectory.
