Plug Power Stock Plunges After $375 Million Convertible Debt Offering
Plug Power shares plummeted Wednesday following the hydrogen fuel cell manufacturer's announcement of a $375 million convertible notes sale. The capital raise aims to refinance existing high-interest debt, with $245.6 million allocated to retire 15% obligations and $101.6 million plus cash reserves targeting 7% debt.
The convertible notes carry a 6.75% coupon and feature a conversion price of approximately $3 per share—a 40% premium to Tuesday's $2.14 closing price. Qualified institutional investors will receive the private placement, which settles in cash, shares, or a combination. Conversion rights remain locked until February.
This financial maneuver comes as Plug Power stock languishes 60% below its October peak, reflecting mounting skepticism about hydrogen technology plays. The debt conversion structure suggests management anticipates equity upside despite recent bearish sentiment.
