LATHAM, N.Y., April 3, 2012 (GLOBE NEWSWIRE) -- 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.
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About Silicon Valley Bank
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 27 U.S. offices and seven international operations. (Nasdaq:SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.
Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond Plug Power's control and that may cause Plug Power's actual results to differ materially from the expectations in Plug Power's forward-looking statements including the risk that we continue to incur losses and might never achieve or maintain profitability, the risk that we expect we will need to raise additional capital to fund our operations and such capital may not be available to us; the risk that the previously disclosed expected uses of the Company's recently raised capital may change; our lack of extensive experience in manufacturing and marketing products may impact our ability to manufacture and market products on a profitable and large-scale commercial basis; the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the cost and timing of developing Plug Power's products and its ability to raise the necessary capital to fund such development costs; the cost and availability of fuel and fueling infrastructures for Plug Power's products; market acceptance of Plug Power's GenDrive system; Plug Power's ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for Plug Power's products; Plug Power's ability to develop commercially viable products; Plug Power's ability to reduce product and manufacturing costs; Plug Power's ability to successfully expand its product lines; Plug Power's ability to improve system reliability for GenDrive; competitive factors, such as price competition and competition from other traditional and alternative energy companies; Plug Power's ability to manufacture products on a large-scale commercial basis; Plug Power's ability to protect its intellectual property; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed under "Item IA-Risk Factors" in (i) Plug Power's annual report on Form 10-K for the fiscal year ended December 31, 2011, filed with the Securities and Exchange Commission ("SEC") on March 30, 2012 and (ii) in Plug Power's quarterly report on Form 10-Q for the quarter ended September 30, 2011 filed with the SEC on November 9, 2011, as well as in the other reports Plug Power files from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.
CONTACT: Media Contact: Reid Hislop Plug Power Inc. Phone: (518) 782-7700 ext. 1360 firstname.lastname@example.org Investor Relations Contact: Cathy Yudzevich Plug Power Inc. Phone: (518) 782-7700 ext. 1448 email@example.com