Plug Power Secures $525M Yorkville Credit Facility and Reports Robust Q1 2025 Preliminary Results

April 28, 2025

DENVER, Colo., Apr 28, 2025 (247marketnews.com)- Plug Power (NASDAQ:PLUG) secured a transformative $525 million credit facility with Yorkville Advisors, alongside strong preliminary Q1 2025 financial results and operational milestones, including the commissioning of its Louisiana hydrogen plant. These developments underscore Plug’s path to profitability, enhanced liquidity, and leadership in the green hydrogen economy, positioning it for sustained growth in a rapidly expanding market.

Andy Marsh, Plug Power’s CEO, opined, “We’ve made the tough decisions and put the structure in place to deliver improved operating leverage and capital efficiency. Between strengthening our balance sheet, scaling hydrogen production, and streamlining operations, we’ve taken the right steps to position Plug for long-term success in the hydrogen economy.”

$525M Yorkville Credit Facility: Reducing Dilution, Enhancing Liquidity

Plug has finalized a definitive agreement for a secured debt facility with Yorkville Advisors, enabling the issuance of up to $525 million in secured debentures. The facility includes:

  • An initial $210 million tranche, set to close on or around May 2, 2025, with proceeds partially allocated (~$82.5 million) to retire most of an existing convertible debenture, reducing potential dilution from ~55 million underlying shares.
  • Additional tranches of up to $315 million, providing flexible capital for growth.

With $296 million in unrestricted cash as of March 31, 2025, and no plans for equity raises in 2025, Plug’s disciplined capital strategy—bolstered by this facility—ensures liquidity to support its expanding hydrogen network and operational ramp-up.

Preliminary Q1 2025 Results: Revenue Growth and Cash Discipline

Plug anticipates reporting Q1 2025 revenue of $130 million to $134 million, a significant step toward its full-year guidance, with Q2 2025 projected at $140 million to $180 million. Key financial highlights include:

Reduced Cash Usage: Net cash usage dropped to ~$142 million in Q1 2025 from $268 million in Q1 2024, driven by working capital optimization and reduced capex. Delayed collections from a key customer, due to a major price adjustment and program enhancement effective January 1, 2025, impacted Q1 cash but set the stage for higher Q2 revenue and cash flows.

Cost Savings: Initiatives launched in March 2025 are expected to yield over $200 million in annualized savings through organizational realignment, manufacturing efficiencies, and supply chain optimization, with impacts accruing in coming quarters.

These results reflect Plug’s focus on margin improvement and profitability, supported by hydrogen plant ramp-ups and strategic price increases.

Louisiana Hydrogen Plant: A Milestone in Vertical Integration

Plug completed its 15-ton-per-day (TPD) hydrogen production plant in St. Gabriel, Louisiana, operated via the Hidrogenii joint venture with Olin Corporation. Now online, the facility strengthens Plug’s vertically integrated hydrogen ecosystem, supplying anchor customers like Amazon and Walmart. This milestone enhances Plug’s ability to meet rising demand for green hydrogen, a critical component of decarbonized energy solutions.

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