NN, Inc. raises $50 million through private stock placement

NN, Inc. (NASDAQ: NNBR) announced it has entered into a securities purchase agreement for a private investment in public equity financing expected to generate net proceeds of approximately $50 million after placement agent fees and offering expenses.

The company plans to issue 16.1 million shares of common stock, or pre-funded warrants in lieu thereof, at $3.30 per share, or $3.29 per pre-funded warrant. Pre-funded warrants carry an exercise price of $0.01 per share, are immediately exercisable, and do not expire. The transaction is expected to close on or about October 5, 2026, subject to customary closing conditions.

Ten investors participated in the offering, comprising a mix of existing and new shareholders. The raise was described as oversubscribed in the company's statement.

NN said it will use the majority of proceeds to redeem and eliminate its remaining Series D Preferred Stock, held by investment funds managed by Morgan Stanley Tactical Value. The company said this action would complete the elimination of all dilutive equity securities within a three-month period.

Remaining proceeds will be directed toward capital expenditures for new equipment and working capital to support current and future sales growth.

The company also provided a third-quarter update, stating that Q3 2026 sales reached their highest levels in eight years and that new business awards totaled approximately $130 million over the trailing 12 months. NN said it is preparing to launch a cable assemblies product line with a new plant in Mexico.

Harold Bevis, President and CEO, said the company's next planned step is refinancing its existing term loan, adding that he believes NN can achieve "a strong multi-million dollar cash interest reduction."

Lake Street Capital Markets acted as sole placement agent. Dentons US LLP served as legal counsel to NN, and Faegre Drinker served as counsel to the placement agent.

The securities have not been registered under the Securities Act of 1933. NN said it has agreed to file a registration statement with the SEC to register the resale of the shares.

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