Plug Power Inc. (NASDAQ:PLUG) shares are trading higher today as the hydrogen solutions provider launched an equipment lease financing platform.
The company aims to raise over $150 million in the short to medium term through a combination of debt leverage and customer financing solutions.
The platform is designed to free up capital from Plug’s equipment assets and provide financing options to drive revenue growth.
Plug initially completed three sale-and-leaseback deals totaling approximately $44 million with GTL Leasing, a portfolio company of Antin Infrastructure Partners.
“It provides immediate capital with a path to additional capital in the near term, supports our growth in the green hydrogen sector and aligns with Plug’s financial and operational objectives,” said Paul Middleton, CFO of Plug.
These agreements cover hydrogen transportation and storage equipment, including trailers and cryogenic storage tanks. The transactions enable Plug to maintain access to essential hydrogen equipment while increasing financial flexibility.
The capital raised will be reinvested in core businesses and will support the company’s long-term growth and expansion plans.
The platform is designed to improve Plug’s operational efficiency and resource management while providing partners like GTL with an attractive investment opportunity to grow their leased asset portfolios.
For GTL and other participants, this partnership offers potential long-term revenue, portfolio diversification and greater involvement in the green hydrogen economy, positioning them for sustainable growth and expansion.
Nathalie Kosciusko-Morizet and Stephan Feilhauer, Senior Partner and Partner at Antin Infrastructure Partners respectively, said: “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 US.”
On Wednesday, Plug Power received a 25 megawatt (MW) order for its proton exchange membrane (PEM) electrolyzer systems from a major oil company joint venture, Castellón Green Hydrogen SL
Investors can access the shares via Global X Hydrogen ETF (NASDAQ:HYDR) and ETF Series Solutions Defiance Next Gen H2 ETF (NYSE:HDRO).
Also read: Plug Power misses Q2 earnings, analysts focus on electrolyzer deployments: ‘The bar was set low’
Price action: PLUG shares rose 5.95% to $2.225 at last check on Thursday.
Photo via Shutterstock
Read more:
UNLOCKED: 5 NEW ACTS EVERY WEEK. Click now to receive the best trading ideas dailyplus unlimited access to advanced tools and strategies to gain an edge in the markets.
Want to receive Benzinga’s latest stock analysis?
This article Plug Power Fuels Sales Boom With $150 Million+ Equipment Leasing Strategy – What’s the Upside? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
