Why This Vegan Stock Is Up 7% Today

Shares of Sweden-based oats drinks company Oatley Group AB OTLY were rallying in premarket trading on Wednesday, bucking the negative sentiment relayed by the index futures.

What Happened: Oatley said it entered into privately negotiated agreements with certain investors on Tuesday to sell $300 million worth of 9.25% convertible senior, payment-in-kind, notes due 2028. PIK refers to a high-risk loan that allows borrowers to pay interest with additional debt, rather than cash.

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The company also said it entered into a commitment letter to amend its sustainable revolving credit facility agreement and another commitment letter for a $125 million term loan B credit facility.

Separately, the company reported a 4.9% year-over-year increase in fourth-quarter revenue and guided to 23%-28% constant currency revenue growth and positive adjusted EBITDA for 2023.

Price Action: In premarket trading, Oatley stock climbed 7.77%, to $2.2, according to Benzinga Pro data.