CHARLOTTE – NN Inc. closed a private placement that generated approximately $50 million in net proceeds, giving the precision manufacturer capital to eliminate its remaining Series D preferred stock and fund equipment and working capital.
The Charlotte-headquartered public company said in an Oct. 5 Form 8-K that it closed the transaction that day. NN issued 11,275,605 common shares and pre-funded warrants covering up to 4,824,395 additional shares, producing about $53 million in gross proceeds before placement fees and other estimated expenses.
The common shares were sold for $3.30 each. The pre-funded warrants were sold for $3.29 each, carry a one-cent exercise price and do not expire. NN reported 93,744,210 common shares outstanding immediately after the common-share issuance.
NN said most of the net proceeds will redeem and eliminate its remaining Series D preferred stock, which is held by funds managed by Morgan Stanley Tactical Value. The company said the balance will support capital spending on equipment and working capital tied to current and future sales growth.
Independent StockStory coverage published by Yahoo Finance said NN shares fell about 3% in afternoon trading after the financing was announced, with investors weighing the dilution created by the new common shares and warrants. The report put the shares at $4.36, down 3.4% from the prior close at that point in the session.
The completed transaction materially changes the capital structure of a North Carolina-headquartered public manufacturer and provides cash for its next operating phase. The filing does not identify new North Carolina jobs, a local facility expansion or a specific amount of spending inside the state, so the immediate state connection is NN’s Charlotte headquarters and corporate financial position.
NN makes precision components for data centers, electric-grid systems, medical products, defense and high-value vehicles. The company says it operates 27 plants with about 2,550 employees worldwide.