Shares of Beyond Meat (NASDAQ:BYND) collapsed more than 60% on Monday after the company announced the early settlement of its convertible debt exchange offer, part of a broader push to ease its heavy debt burden.
The plant-based meat producer said nearly 97% of bondholders agreed to swap their existing 0% Convertible Senior Notes due 2027 for new 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030 and common stock. As part of the transaction, Beyond Meat will issue roughly $208.7 million in new convertible notes and more than 316 million new shares, with completion expected on October 15.
The exchange offer, first launched in September, is aimed at restructuring more than $800 million in debt at a time when the company has faced declining demand for plant-based meat alternatives. As of December 31, 2024, Beyond Meat reported approximately $1.3 billion in total debt.
“We are pleased to announce this Early Settlement of the Exchange Offer for our Existing Convertible Notes, which marks a meaningful next step towards our goal of reducing leverage and extending debt maturity for Beyond Meat,” said Ethan Brown, President and CEO of Beyond Meat.
The massive stock issuance has led to sharp dilution for existing shareholders, fueling the steep drop in share price.
Under the agreement, holders of the newly issued shares will face trading restrictions until October 16, 2025, although they will be allowed to sell around 37.45% of their new holdings before that date.
The debt exchange marks a pivotal moment for Beyond Meat, which continues to battle weak category growth, operational headwinds, and mounting financial pressure.
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