New York, Jan 12, 2026, 12:02 EST — Regular session
- BigBear.ai shares climbed roughly 1.2%, reaching $6.28 by midday
- Attention is on the Jan. 16 redemption date for the company’s 2029 convertible notes
- On Jan. 22, shareholders will vote on a proposal to double the authorized common shares to 1 billion
BigBear.ai Holdings shares edged up Monday, gaining roughly 1.2% to $6.28 after hitting $6.35 earlier. Investors are focused on an upcoming debt redemption that could alter the company’s balance sheet and share count.
The calendar is driving much of the action this week. Noteholders have a tight deadline to convert debt into stock before the company opts for a cash redemption. This scenario tends to attract quick traders, even without major news headlines.
BigBear.ai is also approaching a shareholder vote that might clear the path for issuing additional stock. Investors are weighing this alongside the company’s debt reduction, trying to assess the impact of fewer liabilities but possibly more shares flooding the market.
BigBear.ai announced in an SEC filing that it is calling all its 6.00% convertible senior secured notes due 2029 for redemption, with Jan. 16 as the set date. Investors holding these convertible notes, which can be exchanged for shares, will see the conversion rate increase to 305.5254 shares per $1,000 of principal for conversions between Jan. 2 and Jan. 15, up from 281.4491 shares per $1,000. The filing also noted that note holders must submit their conversions by 5 p.m. New York time on the second scheduled trading day before the redemption date. (BigBear.ai Holdings, Inc.)
The company described the move as a balance-sheet clean-up that won’t heavily drain cash. BigBear.ai plans to cut about $125 million in debt through voluntary conversions and any leftover redemptions. It expects “substantially all” holders to opt for conversion over cash. CEO Kevin McAleenan called this “an important step” toward shoring up the company’s long-term financial foundation, according to the company. (BigBear.ai Holdings, Inc.)
Investors are eyeing a special meeting set for Jan. 22, focused solely on a proposal to double authorized common shares from 500 million to 1 billion. The board is pushing shareholders to approve the increase, citing the need for more equity flexibility to support financing, retention awards, strategic partnerships, and other opportunities, according to proxy documents. (BigBear.ai Holdings, Inc.)
Traders are weighing how much of the 2029 notes will convert into stock rather than be cashed out, and if any holders hold back, potentially straining liquidity. Another key issue is how the market absorbs the expanded share count after conversions are complete.
BigBear.ai’s shares moved while other AI and defense analytics stocks showed mixed results. Palantir barely budged, whereas C3.ai and Booz Allen each gained roughly 1%.
Yet, the very factors that trim debt also weigh on the stock. Conversions and a bigger authorized-share limit boost dilution risk. On top of that, BigBear.ai faces heavy short interest—around 93.4 million shares sold short as of Dec. 15, which is about 21.5% of the public float, according to MarketBeat data. (MarketBeat)
Jan. 16 marks the redemption deadline, followed by the share-authorization vote on Jan. 22. Investors will closely monitor any filings tied to these dates—and watch how the stock reacts once the note overhang is either paid off or converted.
