NN, Inc., the Charlotte-based precision parts maker, announced a private placement expected to generate approximately $50 million in net proceeds, with most of the money earmarked to wipe out the last of its Series D preferred stock. The deal, structured as 16.1 million shares of common stock or pre-funded warrants priced at $3.30 per share, is expected to close on or about October 5, 2026, subject to customary closing conditions. It is the latest in a string of capital moves this year as the industrial supplier works to reshape its balance sheet.
The private investment in public equity, or PIPE, financing drew participation from 10 investors made up of both existing and new shareholders, according to a release distributed by GlobeNewswire, which said the offering was significantly oversubscribed. NN confirmed the same deal terms in its own announcement carried by NN, Inc.'s investor relations site, noting that pre-funded warrants in lieu of common shares will carry a $3.29 price tag and a nominal $0.01-per-share exercise price. Those warrants are immediately exercisable, subject to specified conditions, and do not expire. The news was also picked up by Business Insider, which republished the companies' announcement.
NN said the bulk of the net proceeds will go toward the final redemption and complete elimination of its remaining Series D preferred stock, which is held by investment funds managed by Morgan Stanley Tactical Value. The company said that once the redemption is complete, it will have eliminated all of its dilutive equity securities within the prior three months. The remainder of the proceeds is slated for capital expenditures on new equipment and working capital to support current and future sales growth, the company said.
A Balance Sheet Overhaul Years in the Making
NN said the transaction achieves cash-flow balance for servicing its debt going forward and lowers its leverage on a pro forma basis. The moves build on an August transaction in which NN addressed $124 million of Series D preferred stock, paying off $70 million of it using cash from a July PIPE and exchanging roughly $19 million for common stock. The remaining $35 million was refinanced at a 10% interest rate for one year, with a potential $5 million discount available if redeemed by the end of 2026, per the same investor relations page.
That July financing round generated $75.0 million in gross proceeds through the sale of 24,509,804 shares priced at $3.06 each, with Craig-Hallum Capital Group LLC serving as sole placement agent. NN said at the time that the PIPE was oversubscribed, a sign of what it called strong institutional demand for its stock. Lake Street Capital Markets LLC took over as sole placement agent for the newest round, while Dentons US LLP served as NN's legal counsel and Faegre Drinker advised the placement agent.
Eight-Year-High Sales and a Pipeline of New Business
NN pointed to operational momentum behind the fundraising push, saying third-quarter 2026 sales hit their highest level in eight years. The company also said it had secured approximately $130 million in annual new business over the prior 12 months and had won more than 200 programs during 2026. Those figures reflect NN's own reporting and have not been independently verified.
The company has also been expanding its product lineup, having launched a liquid-cooling-connectors line in 2026 and preparing to enter cable assemblies with a new plant startup in Mexico. Founded in 1980, NN operates 27 global plants and employs roughly 2,550 people serving more than 700 customers across four continents, according to the company's own figures.
What Comes Next for NN's Debt Load
With the preferred stock issue nearly resolved, NN said its next priority is refinancing its high-cost term loan. The company said it believes doing so could produce a strong multi-million-dollar reduction in cash interest, though it has not provided specific projected savings figures. As with the preceding financings, the newly issued shares have not been registered under the Securities Act of 1933, and NN has agreed to file a registration statement with the U.S. Securities and Exchange Commission to register resale of the common stock.
