NN, Inc. jumps as $50M PIPE targets Series D preferred elimination and a term-loan refinance next
The market’s focus is a $50 million PIPE priced below the current quote
NN, Inc. (NASDAQ: NNBR) traded at $4.09 as of 11:35 AM, up $0.46 (12.67%) during market hours, after the company announced a $50 million net private investment in public equity (PIPE). The financing is expected to close on or about October 5, 2026, subject to customary closing conditions.
Under the securities purchase agreement, NN expects to issue an aggregate of 16.1 million shares of common stock (or pre-funded warrants in lieu thereof) at $3.30 per share (or $3.29 per pre-funded warrant). Each pre-funded warrant has an exercise price of $0.01 per share, is immediately exercisable (subject to conditions), and does not expire.
| Item | Detail |
|---|---|
| Stock (as of 11:35 AM) | $4.09 (+$0.46 / +12.67%) |
| Announced financing | PIPE expected to net approximately $50 million (after fees/expenses) |
| Securities issued | 16.1 million shares (or pre-funded warrants in lieu) |
| Common stock price | $3.30 per share |
| Pre-funded warrant price | $3.29 per warrant |
| Pre-funded warrant exercise price | $0.01 per share |
| Expected closing | On or about October 5, 2026 (customary conditions) |
| Investor count | 10 investors (mix of existing and new); significantly over-subscribed |
Most proceeds are earmarked to redeem and eliminate Series D preferred stock
NN said it will use the majority of net proceeds for the final redemption and complete elimination of its remaining Series D Preferred Stock held by investment funds managed by Morgan Stanley Tactical Value funds. The company noted the preferred stock arrangement was entered into over 5 years ago.
Management also stated that, with this anticipated action, NN will have eliminated all of its dilutive equity securities in the last 3 months and that the company has achieved a cashflow balance for servicing its debt on an ongoing basis while lowering leverage on a pro-forma basis.
The company is positioning the PIPE as a bridge to refinancing a high-cost term loan
CEO Harold Bevis said the PIPE “completes a significant step” in NN’s balance sheet evolution and described a next step: refinancing its high-cost Term Loan. Bevis said the company believes it can achieve a multi-million dollar cash interest reduction, which it views as a further driver of value for common stock holders.
Growth funding targets equipment, working capital, and two new product categories
NN said the remainder of net proceeds will be used to fund growth through two avenues: capital expenditures for new equipment tied to future sales and working capital to support increasing current sales—aligned with its stated 5 Pillar growth strategy.
Operationally, the company provided a Q3 update: it said Q3 2026 was another high sales growth quarter with sales at the highest levels in the last 8 years, and that new business awards are at the highest levels ever. NN also said it has secured approximately $130 million of annual new business over the last 12 months.
On product expansion, NN said it launched a brand-new product line in liquid cooling connectors this year and is preparing to enter cable assemblies with a new plant startup in Mexico. The company said these initiatives support growth in data center, grid, medical, defense & electronics, and high value vehicle markets.
| Operating update item | What NN reported |
|---|---|
| Q3 2026 sales | Highest levels in the last 8 years |
| New business awards | Highest levels ever |
| Annual new business (last 12 months) | Approximately $130 million |
| Programs won in 2026 (to date) | Over 200 programs |
| New product line launched | Liquid cooling connectors |
| Next product area and footprint | Cable assemblies; new plant startup in Mexico |
Deal structure details include pre-funded warrants and a planned resale registration
NN said the securities being issued in the PIPE have not been registered under the Securities Act of 1933 and may not be offered or sold in the U.S. absent an effective registration statement or an applicable exemption. The company also stated that it entered into a registration rights agreement under which NN agreed to file a registration statement with the SEC registering the resale of the shares of common stock.
The company described the investor base as 10 investors from a mix of existing and new shareholders and said the investment was significantly over-subscribed, with allocations made across the investor base. NN also noted the raise was enabled by a recent increase in authorized common stock achieved via shareholder vote.
Advisers and placement agent were identified, with closing expected in early October
NN said Lake Street Capital Markets, LLC acted as sole placement agent. Dentons US LLP served as sole legal counsel to NN for the PIPE, and Faegre Drinker served as counsel to the placement agent. NN also said Alpha IR served as investor relations and public communications lead.
With the closing expected on or about October 5, 2026, investors will be watching whether the company follows through on its stated sequence: use proceeds to eliminate Series D preferred, then pursue a term-loan refinance aimed at reducing cash interest expense while continuing investments tied to its growth strategy.
Press release headline: NN, Inc. Announces $50 Million Net Private Placement of Common Stock and Pre-Funded Warrants
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