NN, Inc. Eliminates Series D Preferred Stock in $30.7 Million Redemption
Precision manufacturer NN, Inc. (NASDAQ:NNBR) has completed a balance sheet restructuring by redeeming and eliminating all remaining 18,400 outstanding shares of its Series D Perpetual Preferred Stock. The transaction cost approximately $30.7 million and was funded using proceeds from a $53.1 million private investment in public equity placement that closed on October 5, 2026.
By executing the redemption at this time, the company secured a $5.0 million discount under an agreement with the security's sole holder, paying $30.7 million for a security valued at $35.7 million. The move entirely removes the preferred stock and its associated holder rights from the balance sheet, significantly deleveraging the company and increasing its financial flexibility.
Looking forward, the company plans to leverage its improved capital structure to accelerate its business plan and intends to refinance its existing term loan when market conditions are favorable. Investors can expect updated financial guidance during the next quarterly earnings call scheduled for October 29, 2026.
Key points
- NN, Inc. redeemed and retired all 18,400 outstanding shares of its Series D Perpetual Preferred Stock for $30.7 million.
- The redemption was funded using proceeds from a $53.1 million private placement completed on October 5, 2026.
- The company saved $5.0 million through an incentive agreement with the security's sole holder, reducing the redemption cost from $35.7 million.
- The transaction is part of a broader effort to deleverage the company, with plans to refinance its term loan in the future.
- Updated guidance will be shared during the upcoming quarterly earnings call on October 29, 2026.
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How we writeDisclaimerQuestions and answers
How did NN, Inc. fund the redemption of its preferred stock?
The redemption was funded using proceeds from a $53.1 million private investment in public equity private placement completed on October 5, 2026.
Why did NN, Inc. pay less than the face value of the preferred stock?
The company took advantage of a $5.0 million incentive under a prior agreement with the sole holder of the security, redeeming the $35.7 million value for $30.7 million.
When will NN, Inc. provide updated financial guidance?
The company plans to share updated guidance during its next earnings call scheduled for October 29, 2026.