Street Calls of the Week
EL SEGUNDO, Calif. - Beyond Meat, Inc. (NASDAQ:BYND), currently trading at $2.85 with a market capitalization of $218 million, announced Monday it has commenced an exchange offer for its 0% Convertible Senior Notes due 2027, seeking to reduce leverage and extend debt maturity. According to InvestingPro data, the company operates with a significant debt burden of $1.26 billion and has been rapidly burning through cash.
The plant-based meat company is offering holders a combination of new 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030 and common stock shares in exchange for the existing notes. The new notes will be secured, second-lien obligations maturing in five years. While the company maintains a healthy current ratio of 3.29, suggesting adequate short-term liquidity, InvestingPro analysis reveals concerning trends with 17 key risk factors identified for investors.
Holders who tender their notes by October 10, 2025, will receive $176.09 in principal amount of new notes and 283.64 shares of common stock for each $1,000 of existing notes. Those tendering after the early date but before the October 28, 2025 deadline will receive $170.80 in new notes and the same number of shares.
The company disclosed that holders of approximately 47% of the existing notes have already agreed to support the exchange offer. Beyond Meat will not complete the transaction unless holders of at least 85% of the notes participate.
"As we continue our business transformation, we have simultaneously worked to strengthen our balance sheet," said Ethan Brown, Beyond Meat President and CEO, in a press release statement.
The new notes will bear interest at 7.00% annually, payable in cash or shares. Alternatively, the company may elect to pay interest in kind at a 9.50% rate. The notes will be convertible following stockholder approval of certain proposals.
PJT Partners is serving as financial advisor and dealer manager for the exchange offer, while Latham & Watkins is providing legal counsel to Beyond Meat.
The exchange offer is limited to qualified institutional buyers and accredited investors holding a minimum of $200,000 in existing notes. The securities offered have not been registered under the Securities Act.
In other recent news, Beyond Meat reported second-quarter revenue of $75.0 million, which was below the consensus estimate of $81.8 million. This shortfall, along with softer gross margins, led to an EBITDA that was $6.3 million below analyst expectations. Following these results, BMO Capital lowered its price target for Beyond Meat to $4.00, while maintaining a Market Perform rating. Additionally, Argus downgraded Beyond Meat to a Sell rating, citing ongoing challenges in the plant-based protein market and a shift in consumer preference toward cheaper protein options.
Mizuho reiterated its Underperform rating, highlighting a 24% decline in 4-week sales and a 25% drop in 12-week sales, with a notable 26% decrease in volume over the most recent 4-week period. Furthermore, JPMorgan assumed coverage of Beyond Meat with an Underweight rating, pointing to market share pressure in a declining demand category. Speculation about potential bankruptcy emerged, but Beyond Meat has denied these claims, stating that they have not filed nor are planning to file for bankruptcy. These developments reflect the company’s ongoing struggles in a challenging market environment.
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