LATHAM, N.Y., Aug. 11, 2011 (GLOBE NEWSWIRE) -- Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today reported that it entered into a $7M USD revolving credit facility arrangement with Silicon Valley Bank on August 9, 2011. The facility will provide the company with additional access to working capital in support of its growing GenDrive® business.
Plug Power has seen growth and commercial traction for its GenDrive fuel cell product during the first half of 2011. GenDrive replaces lead-acid batteries in electric lift trucks for the $19.9B USD global material handling market. Plug Power ended the second quarter of 2011 with the largest backlog in the Company's history, totaling $24M USD.
With this additional capital through the revolving line of credit, Plug Power will be able to support working capital needs, including the acquisition of inventory to fulfill a growing order backlog and the resultant management of a larger portfolio of receivables. A strengthened working capital position is important as Plug Power's customer order fulfillment accelerates over the remainder of the year.
Silicon Valley Bank has a reputation for supporting new, market leading and innovative technologies as they emerge and grow. Plug Power was able to leverage its realistic economic models, reliable product suite and proven customer success to validate its business.
"Plug Power is making strategic business decisions to propel us into a stage of profitability for the first time in the Company's history," 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. I believe financial stability is the most important foundation Plug Power can provide its customers, employees and investment community."
"Plug Power is disrupting the status quo in the material handling industry, generating additional need for working capital," said Michael McMahon of Silicon Valley Bank's New York office. "We aim to make our technology clients successful over the long-term, and are pleased to be in a position to assist Plug Power's growth."
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 1,200 GenDrive units shipped to material handling customers, accumulating over 4.5 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 26 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 Private Bank is a division of Silicon Valley Bank. 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, including but not limited to Plug Power's expectations regarding its future cash and working capital positions, its ability to achieve profitability, and its ability to purchase sufficient inventory to meet product shipment requirements. 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 statements regarding 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 risk that the previously disclosed expected uses of the Company's recently raised capital may change; the ability to achieve the forecasted gross margin on the sale of Plug Power's products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; 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, 2010, filed with the Securities and Exchange Commission ("SEC") on March 31, 2011 and (ii) in Plug Power's quarterly report on Form 10-Q for the quarter ended March 31, 2011 filed with the SEC on May 13, 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.