Plug Power Inc. has closed on 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 percent per annum.  Canaccord Genuity and Oppenheimer & Co. Inc. acted as joint advisors on the debt financing.

Hercules Capital, based in Palo Alto, CA, is one of the largest specialty finance companies and leading provider of structured debt to a range of technology companies and industries. Since inception in 2003, Hercules has committed more than $5.9 billion to over 350 companies and is the lender of choice for firms seeking growth capital financing. A perfect fit for Plug Power’s needs, Hercules is uniquely positioned to quickly create innovative financing solutions that fit within a company's existing capital structure and map to its business objectives.

“Hercules Capital is a great strategic partner to align with given their experience, size and ability to play an evolving role as Plug Power continues to grow,” said Andy Marsh, CEO for Plug Power. “Our primary goal for both current and future capital initiatives is to leverage the best overall financing solutions that provide liquidity and overall economics, while avoiding equity dilution of Plug Power's shareholders.”

In addition to closing the Hercules loan facility, Plug Power has 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.

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

The architects of modern hydrogen and fuel cell technology, Plug Power has revolutionized the industry with its simple GenKey solution, elements of which are designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable, cost-effective way.