Beyond Meat’s shares slump as debt exchange offer launched

Core Viewpoint - Beyond Meat is launching a debt swap and equity exchange program aimed at eliminating over $800 million in debt, amidst ongoing financial struggles and significant stock price decline [1][2][5]. Financial Situation - As of June 28, Beyond Meat had $1.2 billion in debt, and reported a net loss of $82.2 million in the first half of fiscal 2025 [2][3]. - The company's shares fell 36% to $1.82, reflecting a loss of more than 52% in value this year [4][5]. Debt Exchange Program - The exchange offer allows investors to swap existing zero percent convertible bonds due in 2027 for new notes maturing in 2030 with a 7% interest rate, along with an exchange of up to approximately 326 million shares [1][2]. - The program is open until October 28, and aims to significantly reduce leverage and extend maturity [2][4]. Business Transformation Efforts - Beyond Meat is undergoing a business transformation while working to strengthen its balance sheet, as indicated by the appointment of a temporary Chief Transformation Officer [2][3][7]. - The company is also seeking to eliminate restrictive covenants and certain events of default related to the existing convertible notes through a consent solicitation [5][6]. Market Response - The stock price has been adversely affected by repeated losses, falling revenues, and an exit from the Chinese market, leading to job cuts and reliance on external financing [5]. - As of the latest update, around 47% of existing note holders have supported the exchange offer, falling short of the required 85% for completion [7].