By Robb M. Stewart
Plug Power's shares slumped ahead of the opening bell after the hydrogen technology provider priced a $375 million offering of senior convertible notes, a move that stands to dilute existing shareholders' stake in the company.
In premarket trading, the shares were 17% lower after last closing at $2.14, roughly flat year-to-date.
Plug Power is offering 6.75% convertible senior notes due 2033 in a private offering to institutional buyers. It has granted the initial purchasers of the notes a 13-day option to buy up to an additional $56.25 million of the notes in all.
The offering price of the notes is 95% of the principal amount.
Plug Power said it intends to use about $245.6 million of the proceeds from the offering to fully repay the outstanding principal amount plus accrued and unpaid interest on its 15% secured debentures. It also plans to use roughly $101.6 million plus some $52.4 million of cash on hand to buy about $138 million worth of its 7% convertible senior notes due 2026.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
11-19-25 0705ET
