Beyond Meat Pullback and Convertible Bond Story

3 months ago

Isabelle Lee

"We're starting with Beyond Meat because the stock is down 17%. So, this isn't a simple stock mover because I'm going to give you a little bit of context. Four years ago, Beyond Meat raised more than a billion dollars by selling a zero coupon convertible bond due 2027. So, big hedge funds like Wolverine, De Shaw, Context Capital were among the buyers. But as the meat-free boom cooled, so did Beyond's Fortune. So, with that debt coming due, the company struck a deal with bond holders. They swapped their old notes for new ones, paying 7% interest in extra shares. Then came the meme stock mania, which brings us to today. So, Beyond stock jumped more than 1,300% in the days. This haded bond holders a huge paper profit. So, the new bonds, which is now due 2030, trades at around 100 cents on the dollar, and one investor calls it a win-win. So, I just thought it was interesting because beyond the stock move story, you see like this convertible bond story, which we don\'t really get to hear a lot about, but yeah, the craze is still there. But the stock see saw a pullback today, rightly so. Probably if you ask technical analysts, but it\'s down 17%. Ticker is BND before anyone gets mad at me. BY ND."

The speaker outlines the history behind Beyond Meat\'s convertible bond issuance and explains the recent pullback in the stock despite its previous surge, noting key technical indicators and debt restructuring details.

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