Axon Enterprise said it plans to raise $1.0 billion through a new issue of 0% convertible senior notes due 2031, with underwriters also getting an option to buy an additional $150 million.
The company said the notes would mature on September 15, 2031. They will not pay regular interest, and the principal will not accrete. Axon said noteholders will be able to convert under certain conditions, with the company able to settle conversions in cash, stock or a mix of both at its election.
Axon expects to use part of the proceeds to pay for capped call transactions tied to the deal. It said the rest would go to general corporate purposes, including funding growth and potentially acquiring or investing in product lines, products, services or technologies.
The company said it may redeem the notes for cash starting September 20, 2029, if its stock trades at least 130% of the conversion price for 20 trading days during a 30-day period. It also said holders may require repurchase of the notes on March 20, 2031 at principal plus any accrued special interest.
If the underwriters exercise the full over-allotment option, the total offering size would rise to $1.15 billion. Today the company's shares have moved -9.58% to a price of $443.21. Check out the company's full 8-K submission here.
