BUZZ-Beyond Meat plunges on launching convertible debt exchange offer
Beyond Meat's shares fell 26% to $2.11 after announcing a convertible debt exchange offer. The stock plunged as much as 56.8% to a record low of $1.23. The company aims to exchange $1.15 billion in convertible notes due 2027 for new convertible PIK notes and common stock. CEO Ethan Brown stated the offer is intended to reduce leverage and extend maturity. The company has faced declining revenue and losses due to weak consumer demand. Analysts largely rate the stock as a sell, with a median price target of $2.42.
Beyond Meat’s (BYND.O) shares down 26% at $2.11 on Mon after plant-based meat maker launches convertible debt exchange offer
BYND shares plunge as much as 56.8% to $1.23, a record low Co looking to exchange its $1.15 bln 0% convertible notes due 2027 with up to $202.5 mln of new convertible PIK (payment-in-kind) 7% notes due 2030, along with 326 mln shares of its common stock, per a filing Mon
PIK means BYND will be able to pay interest with additional debt instead of cash; PIK notes will pay interest at 9.50% annual rate
Co said about 47% of holders of the 2027 notes have already agreed to the exchange offer
Other creditors have until Oct 28 to accept the offer, while those who accept by Oct 10 will receive a premium, the filing shows “The Exchange Offer is intended to significantly reduce leverage and extend maturity, two outcomes that meaningfully support our long-term vision of being the global plant protein company,” CEO Ethan Brown said in a statement Last month, El Sugundo, California-based firm posted drop in revenue and wider-than-expected loss as it continues to face weak U.S. consumer demand amid skepticism over taste, processing and price
With the move on Mon, shares down 42% YTD. Stock, which had about $220 mln market cap on Fri, was trading around $7 a year ago
Of 9 analysts covering BYND, 6 rate “sell” or “strong sell” while 3 rate “hold” and median PT is $2.42, per LSEG data (Lance Tupper is a Reuters market analyst. The views expressed are his own)
