In a strategic financial maneuver, Plug Power Inc. (NASDAQ:PLUG) has completed the issuance of $140.4 million in 7.00% Convertible Senior Notes due 2026. This move, finalized on March 20, 2024, was executed under an agreement with Wilmington Trust, National Association, serving as the trustee.
The newly issued notes were exchanged for $138.8 million of the company's existing 3.75% Convertible Senior Notes due 2025, including accrued and unpaid interest up until the exchange date. The 2025 Notes were immediately canceled following the exchange. After the transaction, around $58.5 million of the 2025 Notes remain outstanding, with their original terms intact.
The 7.00% interest rate on the new notes represents a significant increase from the 3.75% rate of the exchanged notes. Interest payments are scheduled semi-annually, with the first payment due on June 1, 2024.
The record dates for interest payments are set for the close of business on May 15 and November 15, preceding each interest payment date. The maturity date for the new notes is June 1, 2026, unless they are converted, redeemed, or repurchased prior to this date under the terms of the indenture.
This financial restructuring through the exchange transaction allows Plug Power to adjust its debt profile and manage its financial obligations effectively. The information provided is based on a press release statement.
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