NN, Inc. Announces $50 Million Net Private Placement of Common Stock and Pre-Funded Warrants

NN plans to refinance its high-cost Term Loan and believes it can achieve a multi-million dollar cash interest reduction.

Rhea-AI Summary

NN (NASDAQ: NNBR) signed a private-placement agreement expected to generate approximately $50 million in net proceeds from 10 investors. Closing is expected on or about October 5, 2026, subject to customary conditions. NN will issue 16.1 million common shares or pre-funded warrants at $3.30 per share or $3.29 per warrant. Net proceeds reflect placement agent fees and offering expenses.

Most proceeds will redeem all remaining Series D Preferred Stock; the remainder will fund equipment and working capital for growth. NN reported Q3 2026 sales at their highest levels in eight years and approximately $130 million of annual new business secured over the last 12 months. It has won over 200 programs this year and is preparing a cable-assembly product line with a new plant startup in Mexico. The company also reported achieving cash-flow balance for ongoing debt servicing and lower leverage on a pro-forma basis.

9 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Private placement is expected to provide approximately $50 million in net proceeds from 10 investors. 17% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Cash-flow balance achieved for ongoing debt servicing, with leverage lowered on a pro-forma basis.
• Moderate pointQ3 2026 sales reached their highest levels in eight years.
• Moderate pointApproximately $130 million of annual new business secured over the last 12 months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Term Loan refinancing is planned; NN believes a multi-million dollar cash interest reduction is achievable.

4 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Planned redemption will eliminate all remaining Series D Preferred Stock using most net proceeds.
• Minor point. Forward-looking: it has not happened yet and may not happen.Over 200 programs won this year, with launches underway to bring wins into sales.
• Minor point. Forward-looking: it has not happened yet and may not happen.Cable-assembly expansion is being prepared with a new plant startup in Mexico.
• Minor point. Forward-looking: it has not happened yet and may not happen.Growth funding will support new equipment for future sales and working capital for increasing current sales.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.16.1 million common shares or pre-funded warrants to be issued at $3.30 per share or $3.29 per warrant dilute holders.
• Minor point. Forward-looking: it has not happened yet and may not happen.Placement agent fees and offering expenses reduce proceeds available to NN.

News Explained

The warrant alternative could become common shares at a one-cent exercise price, reducing existing holders’ ownership if exercised.

The PIPE is signed but remains subject to closing conditions; under a registration-rights agreement, NN agreed to file an SEC registration statement covering resale of the common shares.

The pre-funded-warrant alternative is immediately exercisable for $0.01 per share, subject to its terms, and does not expire; if exercised, it converts into common shares, increasing the share count and reducing existing holders’ ownership percentages absent offsets.

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-0.28% vs previous close $3.62 last price 45.1x rel. volume Open Argus

Details

Market Reaction – NNBR

$3.54 – $3.96 Day Range

$298.94M Market Cap

On Oct 2, the day this news came out, the latest delayed price for NNBR is 0.28% below the previous close. Our momentum scanner has recorded 2 alerts for this stock so far that day. The latest delayed price is $3.62. Relative volume is exceptionally heavy at 45.1x the average.

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

Key Figures

Expected net proceeds: $50 million Securities issued: 16.1 million Issue price: $3.30 per share; $3.29 per pre-funded warrant +4 more

Expected net proceeds

$50 million

After placement-agent fees and offering expenses

Securities issued

16.1 million

Aggregate common shares or pre-funded warrants in lieu

Issue price

$3.30 per share; $3.29 per pre-funded warrant

PIPE securities purchase terms

Pre-funded warrant exercise price

$0.01 per share

Warrants are immediately exercisable, subject to stated conditions, and do not expire

Expected closing

On or about October 5, 2026

Subject to customary closing conditions

Annual new business

$130 million

Secured over the last 12 months

Sales record

Highest levels in 8 years

Q3 2026 sales, as stated by the company

Previous Private placement Reports

1 past event · Latest: Jul 01

Same Type 1 event

1. Jul 01

   Private placement

   24h Move

   +11.1%

   Prior PIPE issued 24,509,804 common shares at $3.06 for $75.0 million.

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

Key Terms

private investment in public equity financing, pre-funded warrant, registration rights agreement

3 terms

private investment in public equity financing financial

"entered into a securities purchase agreement for a private investment in public equity financing"

A private investment in public equity financing (PIPE) is when a publicly traded company raises money by selling shares or rights that can turn into shares directly to a small group of private investors, rather than through a broad public offering. It matters to investors because it delivers quick capital that can help fund growth or shore up finances, but it also usually increases the number of shares outstanding, diluting existing shareholders’ ownership—similar to taking a fast, private loan in exchange for a piece of the company.

pre-funded warrant financial

"at a price of $3.30 per share (or $3.29 per pre-funded warrant)"

A pre-funded warrant is a financial instrument that gives the holder the right to buy shares of a company's stock at a set price, with most of the purchase cost already paid upfront. It functions like a nearly fully paid option, allowing investors to secure shares quickly while minimizing the amount of additional money they need to invest later. This helps investors gain ownership rights efficiently, often used to avoid certain regulatory restrictions or to prepare for future stock purchases.

registration rights agreement regulatory

"entered into a registration rights agreement pursuant to which NN has agreed to file"

A registration rights agreement is a contract that gives investors the option to have their ownership stakes officially registered with the government, making it easier to sell their shares later. This agreement matters because it provides investors with a clearer path to cash out their investments if they choose, offering more liquidity and confidence in their ability to sell their holdings when desired.

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

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Capital will be used to eliminate all of its preferred stock and to support business growth

CHARLOTTE, N.C., Oct. 02, 2026 (GLOBE NEWSWIRE) -- NN, Inc. (“NN” or the “Company”) (NASDAQ: NNBR), a global leader in precision manufacturing, today announced it has entered into a securities purchase agreement for a private investment in public equity financing (the “PIPE”) that is expected to result in net proceeds of approximately $50 million after deducting placement agent fees and offering expenses. The PIPE is expected to close on or about October 5, 2026, subject to the satisfaction of customary closing conditions.

Capital Raise Overview

Pursuant to the terms of the securities purchase agreement, at the closing of the PIPE, NN will issue an aggregate of 16.1 million shares of common stock (or prefunded warrants in lieu thereof) at a price of $3.30 per share (or $3.29 per pre-funded warrant). Each pre-funded warrant has an exercise price of $0.01 per share of common stock, will be immediately exercisable, subject to certain conditions set forth in each pre-funded warrant, and will not expire.

There are 10 investors making this investment from a mix of both existing shareholders and new shareholders. The investment was significantly over-subscribed and allocations were made across the investor base. The capital raise was enabled by the Company’s recent increase of its authorized common stock achieved via shareholder vote.

Use of Proceeds and Update

Preferred Stock Elimination and Deleverage - NN will use the majority of the net proceeds from this capital raise for the final redemption and complete elimination of the Company’s remaining Series D Preferred Stock held by investment funds managed by Morgan Stanley Tactical Value funds. This preferred stock arrangement was entered into over 5 years ago. With this anticipated action, NN will have eliminated all of its dilutive equity securities in the last 3 months. Additionally, the Company has now achieved a cashflow balance for servicing its debt on an on-going basis and lowered its leverage on a pro-forma basis.

Fund Existing Business Growth and Next-Gen Sales Expansion - NN will use the remainder of the net proceeds to fund the Company’s growth both current growth and future growth. NN is successfully growing and expanding its business consistent with its 5 Pillar growth strategy. The growth investment takes two forms – capital expenditures for new equipment for future sales and working capital for increasing current sales.

Q3 Update – Q3 2026 was another high sales growth quarter for NN and sales were at the highest levels in the last 8 years. New business awards are at the highest levels ever. The company has secured approximately $130 million of annual new business over the last 12 months. Additionally, after successfully launching a brand-new product line this year in liquid cooling connectors, the company is readying its entry into another brand-new product area - cable assemblies - with a new plant startup in Mexico. This new product line will further enable the company to aggressively grow sales in data center, grid, medical, defense & electronics, and high value vehicle.

Harold Bevis, President and CEO of NN, commented, “NN has transformed its financial profile during 2026 with strong operating performance and several capital markets actions. The Company is moving along its multi-year path. This PIPE transaction completes a significant step in our balance sheet evolution. We are eliminating the Series D preferred stock with this action and setting the Company up for its next phase of growth and common stock value increases. We have a great set of investors now and together we are committed to breakthrough, exceptional performance. Next up for NN is to refinance its high-cost Term Loan. We believe we can achieve a strong multi-million dollar cash interest reduction and further increase value for our common stock holders.”

“NN’s key target markets of Data Center, Defense & Electronics, and Medical Products are strong and we are expanding our presence in them. Through the end of September, we secured approximately $130 million of new business over the last 12 months. Our business development team is prospecting and winning new business big-time. We have won over 200 programs this year and the year is not over. Importantly, we are in full-scale launch mode to bring these new wins online and into our sales streams to further boost our sales. Our best days are before us.”

“We would like to thank our banking team, legal advisers and investors for their active leadership completing this PIPE. Lake Street Capital Markets, LLC acted as the sole placement agent for the PIPE. Dentons US LLP served as sole legal counsel to NN for the PIPE. Faegre Drinker served as counsel to the placement agent. Alpha IR served as investor relations and public communications lead for NN.”

The securities being issued and sold in the PIPE have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. Concurrently with the execution of the securities purchase agreement, NN and the investors named therein entered into a registration rights agreement pursuant to which NN has agreed to file a registration statement with the U.S. Securities and Exchange Commission (“SEC”) registering the resale of the shares of common stock.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About NN, Inc.

NN, Inc. (NASDAQ: NNBR) is an entrepreneurial manufacturing company specializing in manufacturing micron-toleranced precision metal componentry for high-growth end markets, especially Data Center, Electric Grid, Medical, Defense, and High-Value Vehicle systems. Founded in 1980, NN serves over 700 customers on 4 continents through its 2,550 person workforce operating out of 27 global plants. This footprint enables rapid innovation and global scaled solutions. For more information, visit 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 Relations: 
Joe Caminiti
NNBR@alpha-ir.com  
312-445-2870 

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much will NNBR's private placement raise, and when is it expected to close?

NN expects approximately $50 million in net proceeds, with closing on or about October 5, 2026, subject to customary closing conditions. The financing involves 10 investors, including existing and new shareholders.

What will NN use the private-placement proceeds for?

NN will use most net proceeds to redeem and eliminate its remaining Series D Preferred Stock. The remainder will fund growth through new equipment for future sales and working capital for increasing current sales.

What are the exercise terms of NNBR's pre-funded warrants?

Each pre-funded warrant has a $0.01 exercise price per common share, is immediately exercisable subject to conditions in the warrant, and does not expire. The purchase price is $3.29 per pre-funded warrant.