"Shares of Beyond Meat slumped to a record low on Monday after the maker of plant-based meat launched an exchange offer for convertible bonds to cut more than $800 million in debt. The stock was last down 32.1% at $1.93, after falling as low as $1.23. The company last month posted a revenue drop and a wider-than-expected loss, citing weak U.S. consumer demand. It said it was still facing "an elevated level of uncertainty" and will not provide any full-year estimates."
"The company will exchange its $1.15 billion 0% convertible notes due 2027, with up to $202.5 million of new convertible payment-in-kind 7% notes due 2030, along with 326 million shares of its common stock, according to a filing on Monday. Payment-in-kind means Beyond Meat will be able to pay interest with additional debt instead of cash, with the payment-in-kind notes paying interest at a 9.50% annual rate."
"The exchange offer is meant to sharply reduce leverage and extend maturity to support Beyond Meat's long-term vision of being a global plant protein company, President and CEO Ethan Brown said in a statement on Monday. The filing showed about 47% of holders of the 2027 notes have already agreed to the exchange offer, while other creditors have until October 28 to accept the offer."
Shares of Beyond Meat plunged to record lows after the company launched an exchange offer to convert up to $1.15 billion of 0% convertible notes due 2027 into up to $202.5 million of payment-in-kind 7% notes due 2030 plus 326 million common shares. The payment-in-kind notes permit interest to be paid with additional debt and carry a 9.50% annual rate. The company reported falling revenue, a wider-than-expected loss, and cited weak U.S. consumer demand and elevated uncertainty while withholding full-year guidance. About 47% of 2027 noteholders have agreed so far; creditors have until October 28 to respond. Analysts warned of fragile finances and weak demand, with most rating the stock sell or hold.
Read at Fast Company
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