Beyond Meat, Inc. (NASDAQ: BYND) saw its stock price plummet 5.47% in pre-market trading on Monday, following the company's announcement of early tender results for its convertible notes exchange offer. The plant-based meat leader's move to restructure its debt has raised concerns about potential share dilution among investors.

The company reported that 96.92% of the outstanding principal amount of its 0% Convertible Senior Notes due 2027 had been tendered in the exchange offer. Beyond Meat will exchange these notes for a combination of new 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030 and up to 326,190,370 shares of common stock. The early settlement is expected to occur on October 15, 2025.

While Beyond Meat's CEO Ethan Brown described the transaction as "a significant step toward reducing leverage and extending debt maturity," the market's negative reaction suggests investors are wary of the potential dilution from the issuance of new shares. The company's decision to issue a substantial number of new shares as part of the exchange offer could significantly increase the total number of outstanding shares, potentially reducing the value of existing shareholders' stakes.