Beyond Meat’s Shares Slump As Debt Exchange Offer Launched

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Beyond Meat’s shares took different hammering arsenic nan loss-making alt-protein shaper launched a indebtedness switch and equity exchange.

Investors will person nan action of swapping existing zero percent convertible bonds owed successful 2027 into notes maturing successful 2030 but carrying an liking complaint of 7%, on pinch an speech of up to circa 326 cardinal successful shares.

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In a connection yesterday (29 September), California-based Beyond Meat said nan programme is aimed astatine eliminating much than $800m successful debt. The speech connection is unfastened until 28 October.

Beyond Meat had $1.2bn of indebtedness arsenic of 28 June, according to its second-quarter results connection issued successful August, erstwhile nan institution besides announced nan assignment of a main translator serviceman (CTO) connected a impermanent basis.

Volumes dropped crossed each nan group’s income channels successful nan first six months of fiscal 2025, astir notably successful US retail, while Beyond Meat reported yet different bottom-line nett nonaccomplishment – $82.2m successful nan first half.

President and CEO Ethan Brown said yesterday: “As we proceed our business transformation, we person simultaneously worked to fortify our equilibrium expanse and are coming pleased to denote that we are launching an speech connection for our existing convertible notes.

“The speech connection is intended to importantly trim leverage and widen maturity, 2 outcomes that meaningfully support our semipermanent imagination of being nan world plant-protein company.”

Beyond Meat’s shares dived, however, falling 36% to $1.82 arsenic of nan adjacent of trading successful New York yesterday. The institution has not reported a nett profit since nan business went nationalist successful 2019.

After repeated losses, falling revenues, an exit from China, occupation cuts and outer financing, nan shares person mislaid much than 52% this twelvemonth and are a fraction of what they were astatine nan timing of nan IPO.

Meanwhile, Beyond Meat suggested yesterday that its debt-exchange connection was a measurement toward curtailing nan consequence of default arsenic nan institution launched a simultaneous “consent solicitation” from holders of nan 2027 notes.

It would purpose to “adopt definite projected amendments to nan indenture”, which, Beyond Meat said, “would destruct substantially each of nan restrictive covenants successful nan existing convertible notes’ indenture, arsenic good arsenic definite events of default and related provisions applicable to nan existing convertible notes”.

As of yesterday, Beyond Meat added that astir 47% of existing statement holders person supported nan speech connection and consent inducement retired of nan required 85% to trigger nan completion of nan transaction.

John Boken astatine consultancy AlixPartners was assigned arsenic Beyond Meat’s CTO successful August.

His remit was to “more quickly and aggressively reducing our operating expenses to fresh anticipated near-term revenues; prioritising accrued distribution of our halfway merchandise lines; and investing successful separator description initiatives crossed these halfway products”, Beyond Meat said.

Earlier this year, nan institution besides revealed it had secured a $100m financing package from Unprocessed Foods, a portion of nan non-profit Ahimsa Foundation, pinch an action to return a number liking successful Beyond Meat.

CEO Brown said astatine nan halfway shape successful August: “The institution continues to acquisition an elevated level of uncertainty wrong its operating environment, which has, and guidance believes could proceed to have, unforeseen impacts connected nan company’s existent realised results.”