Plug Power has closed a long-term loan facility for up to $40 million with Hercules Capital. The proceeds will be used for working capital and general corporate purposes. The facility has a three year term, is secured by a first priority all-asset lien, and has an interest rate of 10.45% per annum.

Canaccord Genuity and Oppenheimer acted as joint advisors on the debt financing.

“Completing these second quarter financing transactions are additional key steps in our long term capital strategy,” said Paul Middleton, Plug Power CFO. “These measures and other near term initiatives will help drive continued growth in both sales and profitability.”

Plug Power has also converted the short-term $25 million borrowing it closed in the first quarter with its strategic project finance partner to long-term project financing for certain deployments completed in the first half of 2016. This initiative broadens Plug Power’s long term view with this strategic partner and sets the stage for follow on project financing support.

Palo Alto, CA-based Hercules Capital is a specialty finance company and provider of structured debt.

Latham, NY-based Plug Power is a provider of modern hydrogen and fuel cell technology.