Shares of NN rose after the company agreed to raise around $50 million through a private investment in public equity financing and said its third-quarter sales growth was strong.

Shares were up 9.8% at $3.99 in Friday morning trading. The stock has more than tripled in value this year.

The precision manufacturing company said Friday that it had strong sales growth in the third quarter with sales levels at an eight-year high. It reported adding around $130 million in annual new business over the past year.

NN also said it would issue 16.1 million shares or pre-funded warrants at $3.30 a share and $3.29 a warrant.

The shares are being sold to 10 investors, representing both existing and new shareholders. The investment was over-subscribed, NN said.

The company said it plans to use most of the proceeds to redeem and completely eliminate its remaining series D preferred stock held by funds associated with Morgan Stanley. The rest of the proceeds will fund the company's current and future growth, including by funding capital expenditures for new equipment.

"This PIPE transaction completes a significant step in our balance sheet evolution," Chief Executive Harold Bevis said. "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."

Bevis said the company's next step will be to refinance its high-cost term loan, adding that he is confident the company can reduce its cash interest by millions.