Wells Fargo EF in Master Lease Arrangement with Plug Power



Plug Power entered into an amendment to its loan agreement with NY Green Bank, a division of the New York State Energy Research & Development Authority (lender), pursuant to which the lender provided 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 and Generate Plug Power SLB 1, (Generate) described below.

On June 30, 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. Pursuant 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 June 30, 2017, the total remaining lease payments to Wells Fargo under the Wells Fargo MLA were $13.4 million.

On June 30, 2017, Proton GCI SPV I, a wholly-owned subsidiary of the company (Proton), entered into an amended master lease agreement with Generate that amended and restated the master lease agreement the company had entered into with Generate Capital on June 3, 2016. Pursuant to the amended Generate MLA, Proton leases fuel cell systems and hydrogen infrastructure from Generate and then and operates them at certain customer locations. At June 30, 2017, the total remaining lease payments to Generate under the amended 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.

Latham, NY-based Plug Power, the architect of modern hydrogen and fuel cell technology, is the innovator that has taken hydrogen and fuel cell technology from concept to commercialization. Plug Power has revolutionized the material handling industry with its full-service GenKey solution, which is designed to increase productivity, lower operating costs and reduce carbon footprints in a reliable, cost-effective way.


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