Plug Power (PLUG) announced on Tuesday its intention to offer $375M worth of convertible senior notes due 2033 in a private offering.
The company will also grant the initial purchaser of the notes a 13-day option to purchase up to an additional $56.25M amount of the notes.
The company plans to use approximately $243M of the net proceeds to fully repay the outstanding principal amount, plus accrued and unpaid interest on its 15.00% secured debentures, and pay the related termination fee.
The company expects to use the remaining net proceeds from the offering, including any additional proceeds from the initial purchaser’s exercise of its option to purchase additional notes, to fund the repurchase of all or a portion of the company’s existing 7.00% Convertible Senior Notes due 2026 and for working capital and other general corporate purposes.
Contemporaneously with the pricing of the notes, the company intends to enter into one or more separate and individually negotiated transactions with one or more holders of our 2026 notes to repurchase 2026 notes for cash on terms to be negotiated with each holder.
