Beyond Meat’s shares plummeted as the alt-protein maker launched a debt swap and equity exchange, aiming to eliminate over $800m in debt. The company had $1.2bn in debt as of June 28. Volumes dropped in all sales channels, resulting in a net loss of $82.2m in the first half of fiscal 2025.

The exchange offer allows bondholders to swap zero percent convertible bonds due in 2027 for notes maturing in 2030 with a 7% interest rate and exchange shares. CEO Ethan Brown stated the offer aims to reduce leverage and extend maturity to support the company’s long-term vision.

As shares fell 36% to $1.82, Beyond Meat’s debt-exchange offer was seen as a step towards avoiding default. The company also initiated a “consent solicitation” to adopt proposed amendments to eliminate restrictive covenants and default provisions in existing convertible notes.

Around 47% of existing note holders supported the exchange offer and consent solicitation, below the 85% required for completion. John Boken was appointed as Beyond Meat’s CTO to reduce operating expenses, increase product distribution, and expand margins.

Earlier this year, Beyond Meat secured a $100m financing package from Unprocessed Foods. CEO Brown acknowledged the uncertainty in the operating environment, affecting the company’s actual results. The company has faced losses, falling revenues, job cuts, and an exit from China, resulting in a 52% drop in shares this year.

Read more at Yahoo Finance: Beyond Meat’s shares slump as debt exchange offer launched