NN Inc. has announced the successful redemption of all outstanding shares of its Series D Perpetual Preferred Stock, amounting to approximately $30.7 million. This strategic move is aimed at enhancing the company’s balance sheet and providing greater capital flexibility for future initiatives.
The redemption was completed on October 7, 2026, as part of a broader effort by NN Inc. to streamline its capital structure. The company utilized proceeds from a recent $53.1 million private investment in public equity (PIPE) completed just days prior, on October 5, 2026. The decision to redeem the preferred stock was further incentivized by a $5 million reduction under a previous agreement with the holder of the security.
“NN has significantly deleveraged during 2026. We will use this newly created capital flexibility to accelerate our business plans,” said Harold Bevis, President and CEO of NN. He added that the company intends to refinance its Term Loan at an appropriate time to further improve its capital structure.
Background on NN Inc.
NN Inc., trading under the ticker symbol NNBR on the Nasdaq, operates within the Metalworking Machinery & Equipment industry, as classified under SIC 3540. The company, founded in 1980, specializes in precision manufacturing of micron-tolerance metal components for various high-growth sectors, including Data Center, Electric Grid, Medical, Defense, and High-Value Vehicle systems. With a workforce of approximately 2,700, NN operates 27 plants globally, serving over 700 customers across four continents.
What the Filing Says
According to the recent SEC filing, NN Inc. has successfully redeemed all 18,400 shares of its Series D Preferred Stock, with the total cash redemption price being approximately $30.7 million. The filing notes that immediately after the redemption, all rights associated with the preferred stock ended, marking a significant change in the company’s capital structure.
Impact
This redemption is expected to positively affect NN Inc.'s financial standing and operational flexibility. By eliminating the preferred stock, the company can focus on its core business strategies without the financial burden of preferred dividends. This action may also influence other companies in the metalworking machinery and equipment sector to consider similar strategies to enhance their balance sheets.
What's Next
The company plans to provide updated guidance during its next earnings call scheduled for October 29, 2026. This call will likely address the implications of the redemption and further financial strategies moving forward.
“NN has significantly deleveraged during 2026. We will use this newly created capital flexibility to accelerate our business plans.” - Harold Bevis, President and CEO