The loan provides Plug Power with additional liquidity and flexibility and does not require minimum cash balances like Plug Power’s prior senior loan facility. The loan leverages the company’s existing restricted cash and will be repaid as that cash is released.
Plug Power will utilize the capital for the deployment of additional hydrogen and fuel cell systems, as well as for growth.
The secured facility has a 36-month term, an interest rate of approximately 11%, is structured to incorporate measures to minimize ongoing project servicing risk and will be repaid as the company’s restricted cash related to project financing is released.
“Plug Power has proudly called New York our home since 1997 and with the continued support of the state we have built a successful commercial enterprise that has grown 300% since 2012,” said Andy Marsh, CEO of Plug Power. “Plug Power products are proven to significantly reduce the environmental footprint of users, and we are impacting the global alternative energy landscape. We are honored to work with New York State to stimulate impactful greenhouse gas reduction, greater innovation, advanced manufacturing and meaningful job growth.”
“NY Green Bank is pleased to provide financing that will support the deployment of Plug’s hydrogen fuel cell systems in New York State and beyond,” said Alfred Griffin, president of NY Green Bank. “By providing creative capital solutions for companies advancing proven clean energy technologies, NY Green Bank is expanding opportunities in the clean energy marketplace and ensuring that New Yorkers receive the related economic development and environmental benefits.”
NY Green Bank is a state-sponsored specialized financial entity working with the private sector to increase investments into New York’s clean energy markets.