Plug Power Shares Drop Premarket After Convertible Notes Offering Prices

By Robb M. Stewart

Plug Power's shares slumped ahead of the opening bell after the hydrogen technology provider priced a $375 million offering of senior convertible notes, a move that stands to dilute existing shareholders' stake in the company.

In premarket trading, the shares were 17% lower after last closing at $2.14, roughly flat year-to-date.

Plug Power is offering 6.75% convertible senior notes due 2033 in a private offering to institutional buyers. It has granted the initial purchasers of the notes a 13-day option to buy up to an additional $56.25 million of the notes in all.

The offering price of the notes is 95% of the principal amount.

Plug Power said it intends to use about $245.6 million of the proceeds from the offering to fully repay the outstanding principal amount plus accrued and unpaid interest on its 15% secured debentures. It also plans to use roughly $101.6 million plus some $52.4 million of cash on hand to buy about $138 million worth of its 7% convertible senior notes due 2026.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 19, 2025 07:05 ET (12:05 GMT)