New York, Jan 14, 2026, 09:26 EST — Premarket
- BigBear.ai shares dropped nearly 3% in premarket trading amid a tightening debt conversion window
- Company expects to retire most 2029 notes primarily via share conversions
- Investors are keeping an eye on a Jan. 22 shareholder meeting that will address a proposal related to authorized shares
BigBear.ai Holdings, Inc shares slipped roughly 3.3% to $6.09 in premarket Wednesday, shedding part of the previous day’s rally. Investors are zeroing in on an upcoming deadline linked to the company’s convertible notes.
The immediate challenge lies in execution, not promotion: noteholders have just days—and in one instance, only hours—to choose whether to exchange debt for equity before a planned redemption. This swap could increase the share count and expand the stock’s trading float.
This matters now since BigBear.ai’s numbers suggest a hefty share issuance linked to the cleanup. Meanwhile, risk appetite dipped in early U.S. equity trading, dragging stock index futures lower. (Reuters)
BigBear.ai announced earlier this month it will redeem all outstanding 6.00% Convertible Senior Secured Notes due 2029, with the redemption set for Jan. 16, according to a regulatory filing. Noteholders have until 5:00 p.m. New York time on Jan. 14—the second scheduled trading day before the redemption—to submit conversions. (SEC)
Convertible notes are debt instruments that can be swapped for shares at a predetermined rate, reducing leverage but often diluting current shareholders. In a Jan. 2 statement, BigBear.ai said it plans to cut about $125 million in debt through conversions and any redemptions. The company also expects to issue roughly 38 million shares to cover these conversions—shares that were reserved when the notes were first issued. CEO Kevin McAleenan described the move as “an important step in strengthening BigBear.ai’s long-term financial foundation,” according to the release. (SEC)
Equity investors face a clear trade-off. While reducing debt and cutting interest expenses can strengthen a small company’s balance sheet, a larger public float—the number of shares available to trade—might drag the stock down if demand doesn’t keep up.
Another vote-driven event is in the pipeline for the company. According to BigBear.ai’s investor page, a special meeting of stockholders will be reconvened on Jan. 22 at 3:00 p.m. EST. (BigBear.ai Holdings, Inc.)
In a letter to shareholders on its website, McAleenan pushed investors to support an amendment raising authorized common shares from 500 million to 1 billion. He stressed that approval “would not result in the immediate issuance of new shares.” The letter also noted that proxy advisers ISS and Glass Lewis backed the proposal. (Bigbear)
BigBear.ai tumbled ahead of the open, dragging down other smaller AI-related stocks. C3.ai and SoundHound each shed roughly 4%, while Palantir slipped slightly.
Still, the downside is obvious. Should noteholders choose cash over conversion, BigBear.ai must cover redemptions amid investor concerns about liquidity and dilution. Even if conversions go as expected, the expanded share count could weigh on prices near term.
The upcoming key dates include the Jan. 14 conversion deadline outlined in the filing and the Jan. 16 redemption date, when any notes that remain unconverted must be bought back for cash.
