AeroVironment, Inc. Announces Pricing of Upsized Offerings of Common Stock And 0% Convertible …

• AeroVironment (AVAV, Financial) announces pricing of upsized offerings of common stock and convertible senior notes.
• The offerings are expected to generate net proceeds of approximately $1.47 billion.
• Funds will be used to repay debt and boost manufacturing capacity.

AeroVironment, Inc. (AVAV) has announced the pricing for its expanded underwritten public offerings. The company is offering 3,528,226 shares of its common stock at a price of $248.00 per share and $650 million in 0% convertible senior notes due 2030. Combined, the offerings are expected to generate approximately $1.47 billion in net proceeds after deducting underwriting discounts and estimated expenses.

The company plans to allocate about $965.3 million of the proceeds to settle existing term loans and borrowings under its revolving credit line. The remaining funds will be used for general corporate purposes, including increasing manufacturing capacity.

Additionally, AeroVironment has permitted underwriters a 30-day option to purchase up to an extra 529,234 shares of common stock and an additional $97.5 million in convertible notes to cover over-allotments. The convertible notes can be turned into shares if certain conditions are met, with an initial conversion rate of 3.1017 shares per $1,000 principal of notes, equivalent to a conversion price of about $322.40 per share, representing a 30% premium over the common stock offering price.

The offerings are anticipated to close on July 3, 2025, subject to customary closing conditions. J.P. Morgan and BofA Securities lead the book-running managers for both offerings, with several other financial institutions acting as joint book-running managers and co-managers.

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