UPDATE - Plug Power expects to raise USD 193m from notes offering

US hydrogen engines provider Plug Power Inc (NASDAQ:PLUG) expects to raise some USD 193.4 million (EUR 179.2m) in net proceeds from its previously announced private offering of notes.

The raised sum could even reach USD 222.5 million if the initial purchasers make full use of their option to buy additional notes, the company said today after pricing the transaction.

Plug Power is offering USD 200 million worth of 3.75% convertible senior notes due 2025 to qualified institutional buyers. It has granted the initial purchasers of the notes a 13-day option to buy up to an additional USD 30 million worth of notes. The initial transaction is expected to close on May 18.

The notes will mature on June 1, 2025, unless earlier repurchased, redeemed or converted. The initial conversion rate is set at 198.6196 shares of Plug Power’s common stock per USD 1,000 principal amount of notes.

Plug Power estimates that roughly USD 15.3 million of the proceeds will go towards paying the cost of certain capped call transactions and a further USD 90.9 million will be used to finance the cash portion of a consideration to be delivered in connection with certain notes repurchases. The remainder of the proceeds will go towards financing “eligible green projects” and for working capital and other general corporate purposes, including potential acquisitions.

(USD 1.0 = EUR 0.927)

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