Plug Power Inc. (NASDAQ: PLUG), a leader in providing clean, reliable energy solutions, today reported that it has secured an extension of its revolving line of credit with Silicon Valley Bank through March 29, 2013. Plug Power’s total revolving credit facility arrangement with Silicon Valley Bank has also been increased from $7 million to $15 million effective with the signing of the extension. The facility will provide the Company with additional access to working capital in support of its growing GenDrive® business.
GenDrive replaces lead-acid batteries in electric lift trucks for the $19.9B USD global material handling market. Growth and commercial traction for Plug Power’s GenDrive fuel cell product continues to build, as represented by the increasing number of purchase orders received in 2011. Plug Power secured new customers, including Associated Wholesale Grocers, Proctor and Gamble and Kroger in 2011. The Company entered 2012 with a backlog of more that 1,900 GenDrive units representing approximately $36.0 million in revenue.
“Plug Power is building a support structure for its growing business and a strengthened working capital position is important as the Company’s customer order fulfillment accelerates,” said Gerry Anderson, CFO at Plug Power. “Additional access to capital will help us secure inventory to meet shipment projections while maintaining a strong cash position on our balance sheet. This financial stability is one of many important assets Plug Power provides to its customers, employees and investment community as we move the Company forward.”
Silicon Valley Bank has a reputation for supporting new, market leading and innovative technologies as they emerge and grow. “It’s our goal to help our clients succeed,” said Michael McMahon of Silicon Valley Bank’s New York office. “Through our partnership and financing solutions we are pleased to support Plug Power’s strategic goals and be in a position to assist the Company as it continues to grow.”
About Plug Power Inc.
The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power’s key accounts, including Wegmans, Whole Foods, and FedEx Freight. With more than 2,000 GenDrive units shipped to material handling customers, accumulating over 5.5 million hours of runtime, Plug Power manufactures tomorrow’s incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.