EVgo secures $225 million credit facility to expand charging network

LOS ANGELES - EVgo Inc. (NASDAQ:EVGO), a $1.1 billion market cap EV charging network operator showing strong revenue growth of 45% over the last twelve months, has closed a $225 million senior secured credit facility to fund the deployment of more than 1,500 additional high-power electric vehicle charging stalls across the United States, the company announced Monday. InvestingPro analysis indicates the company operates with moderate debt levels and maintains healthy liquidity ratios.

The five-year facility, which was oversubscribed, includes an option to increase the total financing to $300 million. According to the company, this represents the largest EV charging commercial bank facility in the United States.

The syndicate of lenders is led by SMBC as Structuring Agent, with Bank of Montreal, Royal Bank of Canada, ING Bank NV, and Investec Bank Plc participating. The company has already received an initial draw of approximately $48 million on July 24.

"This facility will provide incremental low-cost capital to enable us to increase our infrastructure buildout, which will ultimately provide EV drivers more fast charging choices," said EVgo CEO Badar Khan in a press release statement.

The financing carries an interest rate of SOFR plus 3.25%, with a 0.25% step-up beginning in year five. The non-recourse project financing is secured by project assets, with EVgo contributing 400 charging stalls from its existing public network as initial loan collateral. The company’s strong current ratio of 2.27 and liquid assets exceeding short-term obligations, as reported by InvestingPro, likely played a role in securing these favorable terms.

Proceeds will fund the expansion of both EVgo’s public fast charging network and its dedicated charging hubs for autonomous vehicles and fleet partners. The financing allows for the inclusion of stalls that fall outside the scope of EVgo’s existing debt financing.

EVgo currently operates more than 1,100 fast charging stations across over 40 states. The company plans to provide further details about the expansion during its second quarter fiscal 2025 earnings call scheduled for August 5. Analysts anticipate continued sales growth this year, though profitability remains a challenge. For comprehensive analysis of EVgo’s upcoming earnings and detailed financial metrics, investors can access the full research report on InvestingPro, which includes 8 additional key insights about the company’s financial health and market position.

In other recent news, EVgo Inc. reported record first-quarter 2025 earnings, exceeding analyst expectations with a narrower loss per share and higher revenue. The company posted a first-quarter loss per share of ($0.09), outperforming the consensus forecast of ($0.11). Revenue for the quarter reached $75.3 million, surpassing the anticipated $71.4 million and reflecting a 36% increase from the previous year. EVgo’s guidance for the second quarter of 2025 projects revenue between $340-380 million, compared to analysts’ expectations of $351.8 million. UBS maintained a Buy rating on EVgo, adjusting its future EBITDA estimates to $3.5 million for 2025. Morgan Stanley initiated coverage with an Equalweight rating and a $4.00 price target. Additionally, EVgo expanded its 2021 Long Term Incentive Plan by adding 25 million shares to attract and retain talent. Stifel reiterated a Buy rating and an $8.00 price target, citing the company’s strong performance and potential DOE loan retention.

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