Plug Power Launches an Equipment Lease Financing Platform - Plug is Targeting >$150 million from a Combination of Debt Leverage & Customer Financing Solutions

Rhea-AI Summary

Plug Power Inc. (NASDAQ: PLUG) has launched an equipment lease financing platform, targeting over $150 million in the near to mid-term. This initiative aims to leverage Plug's equipment asset base and provide financing solutions to customers, supporting equipment sales growth. As part of this platform, Plug has signed three sale and leaseback transactions totaling ~$44 million with GTL Leasing, a portfolio company of Antin Infrastructure Partners.

The transactions involve various gaseous and cryogenic assets for hydrogen transport and storage. This move allows Plug to retain access to important equipment while strengthening its financial position. The generated funds will be reinvested into core operations, focusing on long-term growth. The platform is expected to enhance Plug's operational efficiency and resource management, while offering partners like GTL valuable investment opportunities in the green hydrogen economy.

Positive

• Launched equipment lease financing platform targeting over $150 million
• Signed initial ~$44 million in direct equipment lease financing transactions
• Retains access to important hydrogen equipment while strengthening financial position
• Funds generated will be reinvested into core operations and growth initiatives
• Enhances operational efficiency and resource management

Negative

• None.

Insights

Financial Analyst

Plug Power's new equipment leasing platform is a strategic move to enhance liquidity and support growth. The initial $44 million in sale-leaseback transactions, part of a larger $150 million target, provides immediate capital while retaining access to important equipment. This approach could improve Plug's balance sheet without diluting shareholders. However, investors should note that leasing arrangements may impact long-term profitability due to ongoing lease payments. The platform's success in reaching its $150 million goal and its impact on operational costs will be key metrics to watch. Overall, this financial engineering demonstrates Plug's proactive approach to capital management in a capital-intensive industry.

Clean Energy Sector Analyst

Plug Power's leasing initiative signals a maturing hydrogen infrastructure market. By monetizing its equipment assets, Plug is not only securing capital but also validating the long-term value of hydrogen transport and storage solutions. The involvement of infrastructure investors like Antin suggests growing confidence in the hydrogen economy's future. This could lead to increased investment inflows into the sector, potentially accelerating the adoption of hydrogen technologies. However, the need for such financial maneuvers may also indicate ongoing challenges in achieving profitability in the green hydrogen space. Investors should monitor how this strategy affects Plug's market position and competitiveness in the rapidly evolving clean energy landscape.

Supply Chain Expert

The equipment leasing platform reveals Plug Power's strategic focus on optimizing its supply chain and logistics. By leasing important hydrogen transport and storage equipment, Plug can maintain operational flexibility while freeing up capital. This approach could lead to more efficient asset utilization and potentially faster scaling of hydrogen distribution networks. The involvement of specialized leasing companies like GTL may also bring expertise in equipment management, potentially improving overall operational efficiency. However, investors should consider the long-term implications of not owning these assets outright, especially if hydrogen transport technology rapidly evolves. The success of this strategy will depend on Plug's ability to balance operational control with financial flexibility in a dynamic market.

Concurrently, Plug Signed Definitive Agreements for an Initial ~$44 Million in Direct Equipment Lease Financing Transactions with GTL Leasing, a Portfolio Company of Antin Infrastructure Partners

SLINGERLANDS, N.Y., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, has announced the establishment of an equipment leasing platform and is targeting over $150 million in the near to mid-term. This platform is intended to enable Plug to access capital by leveraging its equipment asset base and to provide equipment financing solutions to Plug’s customers to support equipment sales growth. As a first step in this platform, Plug signed three separate sale and leaseback transactions equivalent to ~$44 million with GTL Leasing (“GTL”), a portfolio company of Antin Infrastructure Partners (“Antin”). The sale and leaseback transactions include various gaseous and cryogenic assets such as trailers and storage tanks for the transport and storage of hydrogen molecules.

These transactions enable Plug to retain access to crucial hydrogen equipment while strengthening its financial position. The funds generated will be reinvested into Plug’s core operations and focused on driving long-term growth and expansion initiatives.

“These initial transactions and platform mark a crucial step in building a strategic partnership with partners like GTL. It provides for immediate capital with a path to additional capital over the near term, supports our growth in the green hydrogen sector, and aligns with Plug’s financial and operational objectives. We are excited about this partnership and are optimistic about the upcoming opportunities and benefits this platform will bring with GTL and other partners,” stated Plug CFO, Paul Middleton.

This platform aims to enhance operational efficiency and resource management for Plug, while offering partners like GTL a valuable investment opportunity to expand their existing portfolios of leased assets. The platform is expected to support Plug’s ongoing commitment to its strategic initiatives and operational capabilities.

For GTL and other potential participants, this partnership with Plug offers strategic benefits, including a stable, long-term revenue stream, material expansion, and diversification of their product portfolio, which further entrenches these lessors in the green hydrogen economy, and provides a pathway for significant expansion and growth over time.

“We are pleased to participate in these three transactions with Plug Power and to support their continued growth in the green hydrogen sector. These initial transactions and the participation in Plug’s equipment leasing platform align with our goal of investing and supporting innovative and sustainable hydrogen technologies, while also providing us with a stable revenue stream. We look forward to advancing our partnership with Plug Power and exploring further lease opportunities,” stated Michael Koonce, CEO of GTL Leasing.

“When we invested in GTL earlier this year, we aimed to inject capital to diversify and strengthen the business’s equipment portfolio, and these transactions deliver exactly that,” stated Nathalie Kosciusko-Morizet and Stephan Feilhauer, Senior Partner and Partner respectively at Antin Infrastructure Partners. “These transactions not only provide GTL with a robust portfolio of storage tanks and trailers—both cryogenic and gaseous—but also support some of the largest distribution centers in the U.S.” continued Kosciusko-Morizet and Feilhauer.

Goldman Sachs & Co. LLC acted as Plug Power’s financial advisor on the transactions.

About Plug Power

Plug is building an end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals and decarbonize the economy. In creating the first commercially viable market for hydrogen fuel cell technology, the company has deployed more than 69,000 fuel cell systems and over 250 fueling stations, more than anyone else in the world, and is the largest buyer of liquid hydrogen.

With plans to operate a green hydrogen highway across North America and Europe, Plug built a state-of-the-art Gigafactory to produce electrolyzers and fuel cells and is developing multiple green hydrogen production plants targeting commercial operation by year-end 2028. Plug delivers its green hydrogen solutions directly to its customers and through joint venture partners into multiple environments, including material handling, e-mobility, power generation, and industrial applications. For more information, visit www.plugpower.com.

About GTL Leasing

GTL Leasing was established in 2013 and has grown exponentially over the last ten years to become the leading lessor of high-pressure gaseous hydrogen transport and storage equipment. Though hydrogen transport represents the majority of GTL’s fleet, GTL also leases trailers that transport other industrial gases along with a diversification into cryogenic hydrogen and hydrogen compressor/dispenser equipment. GTL provides customers with short- and long-term operating leases which typically include maintenance services provided by its team of highly skilled in-house technicians. GTL has facilities in Catoosa, Oklahoma and Livermore, California. For more information, visit www.gtlleasing.com.

About Antin Infrastructure Partners

Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €31 billion in assets under management across its Flagship, Mid Cap and NextGen investment strategies, Antin targets investments in the energy and environment, digital, transport and social infrastructure sectors. With offices in Paris, London, New York, Singapore, Seoul and Luxembourg, Antin employs approximately 220 professionals dedicated to growing, improving and transforming infrastructure businesses while delivering long-term value to portfolio companies and investors. Majority owned by its partners, Antin is listed on Euronext Paris (Ticker: ANTIN – ISIN: FR0014005AL0).

Plug Power Safe Harbor Statement

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug Power Inc. (“Plug”), including but not limited to statements about Plug’s equipment lease financing platform, including whether, when or on what terms Plug may achieve its target of over $150 million from debt leverage and customer financing solutions in the near to mid-term; the timing and release of funds to Plug with respect to its initial $44 million transactions with GTL; Plug’s intention that the platform will enable it to access capital by leveraging its equipment asset base and to provide equipment financing solutions to Plug’s customers to support equipment sales growth; Plug’s belief that these transactions will enable Plug to retain access to crucial hydrogen equipment while strengthening its financial position and the use of funds to drive long-term growth and expansion initiatives; Plug’s belief that these initial transactions and platform will provide for immediate capital with a path to additional capital over the near term; Plug’s aim for the platform to enhance operational efficiency and resource management for Plug and offer partners a valuable investment opportunity; Plug’s expectation that the platform will support its ongoing commitment to strategic initiatives and operational capabilities; Plug’s belief that partnerships with GTL and other potential participants offers strategic benefits, including a stable, long-term revenue stream, material expansion, and diversification of their product portfolio and provides a pathway for significant expansion and growth over time. You are cautioned that such statements should not be read as a guarantee of future performance or results as such statements are subject to risks and uncertainties. Actual performance or results may differ materially from those expressed in these statements as a result of various factors, including, but not limited to, the following: our ability to achieve our business objectives and to continue to meet our obligations, which is dependent upon our ability to maintain a certain level of liquidity and will depend in part on our ability to manage our cash flows, and the risk that we will need to raise additional capital to fund our operations and such capital may not be available to us. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2023, the Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024 and June 30, 2024, as well as any subsequent filings. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. We disclaim any obligation to update forward-looking statements except as may be required by law.

MEDIA CONTACT

Fatimah Nouilati
Allison
plugPR@allisonpr.com

FAQ

What is Plug Power's new equipment lease financing platform targeting?

Plug Power's new equipment lease financing platform is targeting over $150 million in the near to mid-term from a combination of debt leverage and customer financing solutions.

How much has Plug Power (PLUG) secured in initial lease financing transactions?

Plug Power (PLUG) has secured approximately $44 million in initial direct equipment lease financing transactions with GTL Leasing, a portfolio company of Antin Infrastructure Partners.

What types of assets are included in Plug Power's (PLUG) sale and leaseback transactions?

Plug Power's (PLUG) sale and leaseback transactions include various gaseous and cryogenic assets such as trailers and storage tanks for the transport and storage of hydrogen molecules.

How will Plug Power (PLUG) use the funds generated from these lease financing transactions?

Plug Power (PLUG) will reinvest the funds generated from these lease financing transactions into its core operations, focusing on driving long-term growth and expansion initiatives.