NN has entered into a securities purchase agreement for a private investment in public equity financing expected to generate approximately $50 million in net proceeds after placement agent fees and offering expenses.
The precision manufacturing company expects the PIPE transaction to close on or about October 5, 2026, subject to customary closing conditions.
NN will issue an aggregate of 16.1 million shares of common stock, or pre-funded warrants in lieu of shares, at $3.30 per share or $3.29 per pre-funded warrant. Each pre-funded warrant carries a $0.01 exercise price, is immediately exercisable subject to specified conditions and does not expire.
Ten existing and new shareholders are participating in the financing. NN said the offering was significantly oversubscribed and allocations were made across the investor base.
The company plans to use most of the proceeds to redeem and eliminate its remaining Series D Preferred Stock held by investment funds managed by Morgan Stanley Tactical Value. NN said the action will result in the elimination of all of its dilutive equity securities over the past three months.
The remaining proceeds will support current and future growth, including capital expenditures for equipment tied to future sales and working capital to support increasing sales.
NN also provided an update on its business, saying third-quarter 2026 sales reached their highest level in eight years and new business awards are at record levels.
The company secured approximately $130 million of annual new business during the 12 months through the end of September and has won more than 200 programs during 2026.
NN recently launched a liquid cooling connector product line and is preparing to enter the cable assembly market through a new plant startup in Mexico. The company is targeting growth across data centers, the electric grid, medical products, defense and electronics, and high-value vehicle applications.
NN also plans to refinance its high-cost term loan, with management targeting a multi-million-dollar reduction in cash interest expense.
Lake Street Capital Markets is serving as sole placement agent for the PIPE. Dentons US is serving as legal counsel to NN, while Faegre Drinker is counsel to the placement agent.
KEY QUOTES:
“NN has transformed its financial profile during 2026 with strong operating performance and several capital markets actions. The Company is moving along its multi-year path. This PIPE transaction completes a significant step in our balance sheet evolution. We are eliminating the Series D preferred stock with this action and setting the Company up for its next phase of growth and common stock value increases. We have a great set of investors now and together we are committed to breakthrough, exceptional performance. Next up for NN is to refinance its high-cost Term Loan. We believe we can achieve a strong multi-million dollar cash interest reduction and further increase value for our common stock holders.”
“NN’s key target markets of Data Center, Defense & Electronics, and Medical Products are strong and we are expanding our presence in them. Through the end of September, we secured approximately $130 million of new business over the last 12 months. Our business development team is prospecting and winning new business big-time. We have won over 200 programs this year and the year is not over. Importantly, we are in full-scale launch mode to bring these new wins online and into our sales streams to further boost our sales. Our best days are before us.”
“We would like to thank our banking team, legal advisers and investors for their active leadership completing this PIPE. Lake Street Capital Markets, LLC acted as the sole placement agent for the PIPE. Dentons US LLP served as sole legal counsel to NN for the PIPE. Faegre Drinker served as counsel to the placement agent. Alpha IR served as investor relations and public communications lead for NN.”
Harold Bevis, President and CEO of NN
