Plug Power Inc. (NASDAQ:PLUG) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry Into a Material Definitive Agreement.
On June30, 2017, Plug Power Inc., a Delaware corporation (the “Company”), entered into an amendment (the “Amendment”) to the loan and security agreement dated as of December23, 2016 (the “Loan Agreement”) with NY Green Bank, a Division of the New York State Energy Research& Development Authority (“Lender”), to which Lender provided to the Company a secured term loan facility in the amount of $25 million, subject to certain terms and conditions. The Amendment amends certain defined terms and covenants under the Loan Agreement in order to, among other things, permit the Company’s entry into the sale/leaseback agreements with Wells Fargo Equipment Finance,Inc. (“Wells Fargo”) and Generate Plug Power SLB 1, LLC (“Generate”) described below.
On June30, 2017, the Company entered into a master lease agreement (the “Wells Fargo MLA”) with Wells Fargo to facilitate the Company’s commercial transactions with certain key customers. to the Wells Fargo MLA, the Company leases fuel cell systems and hydrogen infrastructure from Wells Fargo and operates them at certain customer locations. At June30, 2017, the total remaining lease payments to Wells Fargo under the Wells Fargo MLA were $13.4 million.
On June30, 2017, Proton GCI SPV I LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (“Proton”), entered into an amended and restated master lease agreement with Generate (the “Amended and Restated Generate MLA”) that amended and restated the master lease agreement the Company had entered into with Generate Capital,Inc. on June3, 2016. to the Amended and Restated Generate MLA, Proton leases fuel cell systems and hydrogen infrastructure from Generate and then and operates them at certain customer locations. At June30, 2017, the total remaining lease payments to Generate under the Amended and Restated Generate MLA were $34.1 million and have been secured by all assets of Proton and a guaranty by the Company coupled with a pledge of the Company’s ownership interest in Proton.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant
See the disclosure set forth in Item 1.01, “Entry into a Material Definitive Agreement,” of this Current Report on Form8-K, which disclosure is incorporated into this Item 2.03 by reference.