UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 8‑K
CURRENT REPORT
Pursuant to Section 13 or
15(d) of the
Securities Exchange Act of 1934
__________________________________
Date of Report (Date of earliest event reported): September 28, 2011
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PLUG POWER INC. |
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(Exact name of registrant as specified in charter)
Delaware |
1-34392 |
22-3672377 |
(State or Other
Jurisdiction |
(Commission File Number) |
(IRS Employer |
968
Albany Shaker Road, Latham, New York 12110
(Address of Principal Executive
Offices) (Zip Code)
(518)
782-7700
(Registrants telephone number,
including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
On September 28, 2011, Plug Power Inc. (the Company) executed a First Loan Modification Agreement (the Loan Modification) with Silicon Valley Bank, amending the August 9, 2011 Loan and Security Agreement. The Loan Modification removed the $750,000 sublimit for outstanding letters of credit, foreign exchange contract financing and amounts utilized for cash management services, making the full $7 million credit facility available for financing accounts receivables and eligible inventory. All remaining terms of the August 9, 2011 Loan and Security Agreement, as disclosed in the Companys Quarterly Report on 10Q filed on August 11, 2011, remain in full force and effect. A copy of the Loan Modification is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
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Title |
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10.1 |
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First Loan Modification Agreement dated September 28, 2011.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PLUG POWER INC. |
Date: September 30, 2011 |
By: /s/ Andrew Marsh |
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Andrew Marsh |
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Chief Executive Officer |
FIRST LOAN MODIFICATION AGREEMENT
This First Loan Modification Agreement (this Loan Modification Agreement) is entered into as of 9/28/11, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 535 Fifth Avenue, 27th Floor, New York, NY 10017 (Bank) and PLUG POWER INC., a Delaware corporation, with its principal place of business at 968 Albany Shaker Road, Latham, New York 12110 (Borrower).
(i) In addition and notwithstanding the foregoing: (i) the aggregate amount of (1) Advances outstanding hereunder, plus (2) the Dollar Equivalent amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) issued pursuant to Section 2.1.2, plus (3) the portion of the FX Reduction Amount based on FX Forward Contracts, plus (4) the sum of amounts utilized for Cash Management Services pursuant to Section 2.1.4, may not exceed Seven Million Dollars ($7,000,000.00) and (ii) the aggregate amount of Advances based on Inventory Placeholder Invoices outstanding at any time may not exceed the Inventory Placeholder Availability Amount.
(ii) The sum of (A) the aggregate amount of the Dollar Equivalent amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) issued pursuant to Section 2.1.2, plus (B) the FX Reduction Amount, plus (C) the sum of amounts utilized for Cash Management Services pursuant to Section 2.1.4, may not exceed Seven Hundred Fifty Thousand Dollars ($750,000.00) in the aggregate at any time.
and inserting in lieu thereof the following:
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(i) Notwithstanding any terms in this Agreement to the contrary: (i) the aggregate amount of Advances outstanding hereunder may not exceed Seven Million Dollars ($7,000,000.00); and (ii) the aggregate amount of Advances based on Inventory Placeholder Invoices outstanding at any time may not exceed the Inventory Placeholder Availability Amount.
(ii) Intentionally omitted.
(a) Upon Borrowers request, Bank may, in its good faith business discretion, issue or have issued Letters of Credit denominated in Dollars or a Foreign Currency for Borrowers account. The aggregate Dollar Equivalent amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letters of Credit Reserve) may not exceed the amounts set forth in Section 2.1.1(b) above. Any such aggregate amounts utilized hereunder, to the extent not cash secured as set forth herein, shall reduce the amount otherwise available for Credit Extensions hereunder. At any time when Borrowers unrestricted cash maintained with Bank is less than Five Million Dollars ($5,000,000.00), Borrower shall provide to Bank cash collateral in an amount equal to (i) with respect to outstanding Letters of Credit denominated in Dollars, one hundred and five percent (105.0%), and (ii) with respect to outstanding Letters of Credit denominated in a currency other than Dollars, one hundred ten percent (110.0%), of the Dollar Equivalent amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Banks standard Application and Letter of Credit Agreement (the Letter of Credit Application). Borrower agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guaranteed by Bank and opened for Borrowers account or by Banks interpretations of any Letters of Credit issued by Bank for Borrowers account, and Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrowers instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements thereto, except for errors or mistakes directly resulting from Banks gross negligence or willful misconduct.
(b) The obligation of Borrower to immediately reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application.
(c) Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such Letters of Credit, Bank shall treat such demand as an Advance to Borrower of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars at the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency.
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(d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letters of Credit payable in a Foreign Currency, Bank shall create a reserve (the Letter of Credit Reserve) in an amount equal to ten percent (10.0%) of the Dollar Equivalent amount of such Letters of Credit. The amount of the Letter of Credit Reserve may be adjusted by Bank from time to time to account for fluctuations in the exchange rate.
(e) Borrower shall pay Banks customary fees and expenses for the issuance or renewal of Letters of Credit, upon the issuance of such Letter of Credit, each anniversary of the issuance during the term of such Letter of Credit, and upon the renewal of such Letter of Credit by Bank.
and inserting in lieu thereof the following:
2.1.2 Bank Services. At any time when Borrowers unrestricted cash maintained with Bank is less than Five Million Dollars ($5,000,000.00), Borrower shall immediately pledge cash collateral to Bank to cash secure any obligations with respect to Bank Services provided by Bank on terms and conditions acceptable to Bank and: (a) with respect to Letters of Credit, in an amount equal to (i) for Letters of Credit denominated in Dollars, one hundred and five percent (105.0%) and (ii) with respect to Letters of Credit denominated in a currency other than Dollars, one hundred ten percent (110.0%), in each case of the Dollar Equivalent amount of all such Letters of Credit, plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment); (b) with respect to FX Forward Contracts, in an amount consistent with Banks current foreign exchange contracts policies; and (c) with respect to cash management services, an amount consistent with Banks current cash management services policies. Any such cash collateral shall be required to be maintained for so long as Borrowers unrestricted cash maintained with Bank is less than Five Million Dollars ($5,000,000.00).
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2.1.3 Foreign Exchange Sublimit. Upon Borrowers request, Bank may, in its good faith business discretion, permit Borrower to use a portion of its availability hereunder (which amount is set forth in Section 2.1.1(b)) to enter into foreign exchange contracts with Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency (each, a FX Forward Contract) on a specified date (the Settlement Date). FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10.0%) of each outstanding FX Forward Contract. If the FX Forward Contracts are not cash secured as contemplated herein, the amount otherwise available for Credit Extensions hereunder shall be reduced by an amount equal to ten percent (10.0%) of each outstanding FX Forward Contract (the FX Reduction Amount). Any amounts needed to fully reimburse Bank for any amounts not paid by Borrower in connection with FX Forward Contracts will be treated as Advances and will accrue interest at the interest rate applicable to Advances. At any time when Borrowers unrestricted cash maintained with Bank is less than Five Million Dollars ($5,000,000.00), Borrower shall provide to Bank cash collateral in an amount consistent with Banks current foreign exchange contracts policies to secure all of the Obligations relating to all outstanding FX Forward Contracts.
and inserting in lieu thereof the following:
2.1.3 Intentionally omitted.
2.1.4 Cash Management Services Sublimit. Upon Borrowers request, Bank may, in its good faith business discretion, permit Borrower to use a portion of its availability hereunder (which amount is set forth in Section 2.1.1(b)) for Banks cash management services, which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Banks various cash management services agreements (collectively, the Cash Management Services). Any amounts Bank pays on behalf of Borrower for any Cash Management Services, to the extent not cash secured as contemplated herein, shall reduce the amount otherwise available for Credit Extensions hereunder. At any time when Borrowers unrestricted cash maintained with Bank is less than Five Million Dollars ($5,000,000.00), Borrower shall provide to Bank cash collateral in an amount consistent with Banks current cash management services policies to secure all of the Obligations relating to all outstanding Cash Management Services.
and inserting in lieu thereof the following:
2.1.4 Intentionally omitted.
Borrower acknowledges that it may have previously entered, and/or may in the future enter, into Bank Services with Bank. Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority security interest granted herein.
In addition to and without limiting the foregoing, the grant of a security interest by Borrower in Section 4.1 shall survive until the termination of this Agreement and all Bank Services Agreements.
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Bank Services are any products and/or credit services facilities provided to Borrower by Bank, including, without limitation, all letters of credit, guidance facilities, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services) and foreign exchange services as any such products or services may be identified in Banks various agreements related thereto (each, a Bank Services Agreement).
Bank Services Agreement is defined in the definition of Bank Services.
Cash Management Services is defined in Section 2.1.4.
FX Business Day is any day when (a) Banks Foreign Exchange Department is conducting its normal business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency.
FX Reduction Amount is defined in Section 2.1.3.
Letter of Credit Application is defined in Section 2.1.2(a).
Letter of Credit Reserve has the meaning set forth in Section 2.1.2(d).
Settlement Date is defined in Section 2.1.3.
Credit Extension is any Advance, Letter of Credit, FX Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by Bank for Borrowers benefit.
FX Forward Contract is defined in Section 2.1.3.
Invoice Transmittal shows Eligible Accounts which Bank may finance and, for each such Account, includes the Account Debtors, name, address, invoice amount, invoice date and invoice number, and, with respect to requests for Credit Extensions made pursuant to Sections 2.1.2, 2.1.3 and/or 2.1.4, includes (i) the type of Credit Extension requested and (ii) the requested amount of such Credit Extension.
Letter of Credit means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank, including, without limitation, as set forth in Section 2.1.2.
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Loan Documents are, collectively, this Agreement, the Perfection Certificate, the IP Agreement, the SVB Control Agreement, other Control Agreements, the Borrowing Resolutions, any subordination agreements, any note, or notes or guaranties executed by Borrower and/or any Guarantor, and any other present or future agreement between Borrower and/or any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified.
and inserting in lieu thereof the following:
Credit Extension is any Advance, or any other extension of credit by Bank for Borrowers benefit (including, without limitation, pursuant to any Loan Documents).
FX Forward Contracts are foreign exchange contracts with Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency.
Invoice Transmittal shows Eligible Accounts which Bank may finance and, for each such Account, includes the Account Debtors, name, address, invoice amount, invoice date and invoice number.
Letter of Credit means a standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank.
Loan Documents are, collectively, this Agreement, the Perfection Certificate, the IP Agreement, the SVB Control Agreement, other Control Agreements, any Bank Services Agreement, the Borrowing Resolutions, any subordination agreements, any note, or notes or guaranties executed by Borrower and/or any Guarantor, and any other present or future agreement between Borrower and/or any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified.
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This Loan Modification Agreement is executed as of the date first written above.
BORROWER: | BANK: |
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