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Open original source ↗$BYND is a great example of how expensive “cheap” convertible debt can be, if the underlying business goes south.
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Beyond Meat $BYND shares are tumbling after the company announced early results for its exchange offer of 0% Convertible Notes due 2027. Roughly 96.9% ($1.11B) of outstanding notes were tendered, well above the 85% threshold. In return, Beyond Meat will issue $208.7M of new 7% Convertible Notes due 2030 and about 316 million new shares, effectively rolling over $208M in debt and extinguishing over $800M. CEO Ethan Brown called the early settlement “a meaningful next step toward reducing leverage and extending debt maturity.” The early settlement is set for Oct. 15, with a lock-up on most new shares until Oct. 16, which may be adding to the stock pressure today.
wallstengine ↗