Loan & DebtAug 5, 2026, 04:18 PM
NN Inc. Reduces & Refinances $124M Preferred Stock
AI Summary
NN, Inc. announced a three-part transaction to address its $124 million Series D preferred stock held by investment funds managed by Morgan Stanley Tactical Value. The company paid off $70 million using cash from a previously announced PIPE transaction, exchanged approximately $19 million for common stock, and refinanced the remaining $35 million at a reduced 10% interest rate for one year. This strategic move significantly deleverages NN's balance sheet and is expected to set the stage for refinancing its secured Term Loan debt at a lower cost of capital, enhancing shareholder value.
Key Highlights
- NN, Inc. addressed its $124 million Series D preferred stock held by Morgan Stanley Tactical Value.
- $70 million of preferred stock was paid off using cash from a PIPE transaction.
- An additional $19 million of preferred stock was exchanged for common stock with Morgan Stanley.
- The remaining $35 million of preferred stock was refinanced at a reduced 10% interest rate for one year.
- A $5 million discount is available if the remaining preferred stock is redeemed by December 31, 2026.
- The transaction significantly deleverages NN's balance sheet and strengthens its financial position.
Price Impact
More from NNBR