Plug Power Inc., a global leader in comprehensive hydrogen solutions, has signed a definitive agreement with Yorkville Credit Facility for a secured debt facility worth up to $525 million. The initial tranche of $210 million is expected to close on or around May 2, 2025, and will be used to retire the majority of its existing convertible debenture principal outstanding.
The company expects to report revenue of approximately $130-134 million for the first quarter of 2025, with second-quarter revenue ranging from $140-180 million. Plug anticipates significant near-term reductions in cash usage due to hydrogen plant ramp-ups and cost savings initiatives.
Plug Power has completed construction on its new 15TPD hydrogen production plant in Louisiana, which will serve anchor customers including Amazon and Walmart. The company aims to leverage this facility to drive higher revenue and improved cash flows going forward.
CEO Andy Marsh stated that the company has taken decisive actions to reduce operational costs, implementing changes that are expected to drive over $200 million in incremental annualized run-rate savings.
The secured debt facility is a significant step towards Plug’s path towards profitability and long-term growth. With the initial tranche closed, the company expects to have sufficient liquidity to support its growth plans.
Plug has no intention of raising additional equity in 2025, underscoring its focus on disciplined capital management. The company believes that with the Yorkville credit facility and cost savings initiatives, it will be able to achieve its long-term goals without relying on further funding.
Source: https://www.globenewswire.com/news-release/2025/04/28/3069106/0/en/Plug-Power-Signs-525-Million-Secured-Credit-Facility-with-Yorkville-Advisors-and-Reports-Strong-Preliminary-Q1-2025-Results.html