NN, INC. Announces $124 Million Refinancing and Deleveraging Transaction

Rhea-AI Summary

NN (NASDAQ: NNBR) announced a negotiated refinancing and deleveraging transaction involving its $124 million Series D preferred stock held by funds managed by Morgan Stanley Tactical Value. The 3-part deal uses equity and refinancing to reduce preferred obligations and adjust the capital structure.

NN has redeemed $70 million of preferred using cash from a previously announced $75 million PIPE common stock financing completed in July 2026, and exchanged approximately $19 million of preferred into common stock under an agreement with Morgan Stanley Tactical Value. The remaining $35 million of preferred has been refinanced at a 10% interest rate for one year, with a potential $5 million discount if fully redeemed by December 31, 2026. According to NN, this materially reduces about $89 million of preferred stock, strengthens the balance sheet and supports a more favorable outlook for refinancing its secured term loan debt at a lower cost of capital.

Positive

• Approximately $89 million of Series D preferred stock reduced
• $70 million preferred redeemed using cash from oversubscribed $75 million PIPE
• Approximately $19 million preferred exchanged into common equity with key holder
• Remaining $35 million preferred refinanced at 10% rate for one year
• Potential $5 million discount if remaining preferred redeemed by December 31, 2026

Negative

• July 2026 $75 million PIPE and $19 million stock exchange increase common share count
• Company still carries $35 million of preferred at 10% until redemption or maturity

Market reaction after preferred stock refinancing: NNBR +9.49%

+9.49% $4.27 1.6x vol

15m delay

+9.49% Vs previous close

+17.5% Peak Tracked

-8.2% Trough Tracked

$4.27 Last Price

$3.76 $4.86 Day Range

$329.15M Market Cap

1.6x Rel. Volume

Following this news, NNBR has gained 9.49%, reflecting a notable positive market reaction. Argus tracked a peak move of +17.5% during the session. Argus tracked a trough of -8.2% from its starting point during tracking. Our momentum scanner has triggered 39 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $4.27. Trading volume is above average at 1.6x the average, suggesting increased trading activity.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

NNBR recorded positive 24-hour reactions ranging from 3.22% to 31.16% across its five recent news ev...

Analysis

NNBR recorded positive 24-hour reactions ranging from 3.22% to 31.16% across its five recent news events. The refinancing is additionally framed by moderate short positioning and disclosed net insider selling.

Key Figures

Series D preferred stock: $124 million Preferred stock reduction: $89 million Preferred stock paid off: $70 million +5 more

8 metrics

Series D preferred stock $124 million Preferred stock security held by Morgan Stanley Tactical Value

Preferred stock reduction $89 million Approximate reduction from the Series D preferred stock

Preferred stock paid off $70 million Paid off using cash raised through the July 2026 PIPE

PIPE cash used $70 million Cash raised through a sale of common stock

Preferred stock exchanged $19 million Common stock issued through an exchange agreement

Remaining preferred stock $35 million Refinanced for one year

Reduced interest rate 10% Rate on the refinanced preferred stock for one year

Redemption discount $5 million Available if the remaining preferred stock is redeemed by December 31, 2026

Historical Context

5 past events · Latest: Jul 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 23	Earnings call scheduling	Neutral	+3.2%	Conference call scheduling preceded a 3.22% 24-hour positive reaction
Jul 20	Defense contract expansion	Positive	+9.4%	New firearms manufacturing awards preceded a 9.43% 24-hour positive reaction
Jul 06	Medical business award	Positive	+6.0%	Robotic-surgery component qualification and orders preceded a 6.02% 24-hour positive reaction
Jul 01	PIPE private placement	Positive	+11.1%	A $75.0 million PIPE preceded an 11.14% 24-hour positive reaction
Jun 29	AI cooling awards	Positive	+31.2%	Liquid-cooling awards and capacity expansion preceded a 31.16% 24-hour positive reaction

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

NNBR had positive 24-hour reactions after four positive company announcements and also after one neutral conference-call scheduling notice.

Key Terms

pipe transaction, preferred stock, deleverages, exchange agreement

4 terms

pipe transaction financial

"sale of common stock via a PIPE transaction during July 2026"

A PIPE transaction is when a publicly traded company sells new shares or convertible securities directly to a select group of private investors, rather than through a public offering. It’s essentially a quick way for a company to raise cash, but it can dilute existing shareholders and often involves a price discount, so investors watch PIPEs for their potential impact on share value and ownership stakes—like a private top-up that changes the size of everyone’s slice of the pie.

preferred stock financial

"Company’s $124 million of Series D preferred stock security"

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

deleverages financial

"Transaction reduces approximately $89 Million of Series D preferred stock, materially deleverages Company"

Deleverages means a company is reducing its financial leverage by lowering the amount of debt it carries relative to its assets or earnings. Like a household paying down a mortgage or selling possessions to cut what it owes, a firm can deleverage by repaying loans, refinancing into lighter debt, or selling assets; investors track deleveraging because it changes risk, interest costs, creditworthiness, and how future profits are available to shareholders.

exchange agreement financial

"using $19 million of common stock via an exchange agreement"

A written deal in which two parties agree to swap assets, securities or obligations under set terms—think of it as a formal swap or trade contract. For investors it matters because such agreements can change who owns what, alter a company’s capital structure, affect future cash flows or dilute existing shares, and therefore influence value and risk in a straightforward, contract-driven way.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Transaction reduces approximately $89 Million of Series D preferred stock, materially deleverages Company

CHARLOTTE, N.C., Aug. 05, 2026 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced a negotiated transaction regarding the Company’s $124 million of Series D preferred stock security held by investment funds managed by Morgan Stanley Tactical Value.

Overview of 3-Part Transaction:

1. NN has paid off $70 million of preferred stock by using $70 million of cash raised through a sale of common stock via a PIPE transaction during July 2026 (previously announced)
   
   
2. NN has exchanged an additional approximate $19 million of preferred stock by using $19 million of common stock via an exchange agreement with Morgan Stanley Tactical Value
   
   
3. NN has refinanced the remaining $35 million of preferred stock at a reduced interest rate of 10% for one year, as well as a new $5 million discount available if the Company redeems the remaining preferred stock by December 31, 2026
   
   

Harold Bevis, President and CEO of NN, Inc. commented, “NN’s business performance drove strong investor demand for its recent $75 million PIPE transaction. This underscored the depth of liquidity available for high-quality manufacturing companies that are focused on the right markets with compelling products and an experienced global team, even amid periods of market volatility. The PIPE transaction was oversubscribed, further demonstrating institutional demand for NN, Inc. stock.”

Bevis continued, “Furthermore, as part of the refinancing, long-standing preferred stockholder Morgan Stanley Tactical Value agreed to convert a portion of its preferred equity into NN common stock, helping facilitate a negotiated transaction between the parties. NN has paid off the majority of its preferred stock and materially deleveraged. This transaction also strengthens NN’s balance sheet and sets up a favorable outlook for refinancing our secured Term Loan debt at a lower cost of capital. This is a performance-led advancement for NN’s shareholders, and sets the stage for significant further value creation.”

Advisors
Craig-Hallum Capital Group served as financial advisor to NN, Inc.; Cooley LLP served as legal counsel to NN, Inc.; Faegre Drinker Biddle & Reath LLP served as legal counsel to Craig-Hallum; and Gibson, Dunn & Crutcher LLP served as legal counsel to Morgan Stanley Tactical Value.

Conference Call

NN will discuss its results during its quarterly investor conference call on August 6, 2026, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN's website, www.nninc.com. The conference call can also be accessed by dialing (833) 461-5787 (domestic) or (585) 542-9983 (international) and entering Conference ID number 186058461. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call.

About NN, Inc.

NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, South America, Europe and China. For more information about the company and its products, please visit www.nninc.com.

Forward Looking Statements

This press release may contain forward-looking statements regarding our business, operations, and financial performance. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our most recently filed Form 10-K and our Form 10-Q for the period following that Form 10-K, including the risk factors described therein. We undertake no obligation to update any forward-looking statement, except as required by law. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements.

Investor & Media Contacts:
NN, Inc.
Joseph Caminiti
NNBR@alpha-ir.com
312-445-2870

FAQ

What refinancing and deleveraging transaction did NNBR announce on August 5, 2026?

NN announced a negotiated refinancing and deleveraging of its $124 million Series D preferred stock. According to NN, the transaction combines cash redemption, equity exchange, and a refinanced preferred tranche to materially reduce preferred obligations and reshape its capital structure.

How much Series D preferred stock did NNBR reduce in the 2026 refinancing deal?

NN reports reducing approximately $89 million of its Series D preferred stock through redemption and exchange. According to NN, this reduction comes from a $70 million cash payoff and an approximate $19 million conversion to common stock.

What are the key terms of NNBR's remaining $35 million Series D preferred stock?

The remaining $35 million Series D preferred has been refinanced at a 10% interest rate for one year. According to NN, a new $5 million discount is available if this balance is redeemed by December 31, 2026.

How was the $70 million payoff of NNBR preferred stock funded in 2026?

NN funded the $70 million preferred payoff with cash from a $75 million PIPE common stock sale completed in July 2026. According to NN, strong investor demand oversubscribed this PIPE financing, indicating institutional interest in the company’s equity.

What role did Morgan Stanley Tactical Value play in NNBR's 2026 refinancing?

Morgan Stanley Tactical Value funds held NN’s $124 million Series D preferred and agreed to an exchange. According to NN, the investor converted approximately $19 million of preferred into common stock, helping facilitate the negotiated three-part transaction.

How does NNBR expect the refinancing to impact its balance sheet and debt costs?

NN states the transaction materially deleverages the company and strengthens its balance sheet. According to NN, this improved position supports a more favorable outlook for refinancing its secured term loan debt at a lower cost of capital.

Will NNBR's 2026 PIPE and exchange transaction affect existing common shareholders?

The $75 million PIPE and approximately $19 million preferred-for-common exchange both involve issuing additional common shares. According to NN, these equity actions were central to paying down and converting portions of its Series D preferred stock.