AeroVironment Announces Proposed Public Offerings of Common Stock and Convertible Senior Notes

Strategic Insights -

AeroVironment, Inc., a leading defense technology company, today announced proposed underwritten public offerings of $750,000,000 of common stock and $600,000,000 in aggregate principal amount of convertible senior notes due 2030. The Company plans to use the net proceeds from the offerings to repay indebtedness and for general corporate purposes, including increasing manufacturing capacity. J.P. Morgan and BofA Securities are acting as lead book-running managers, while Raymond James is a joint book-running manager for the Convertible Notes Offering.

Key Takeaways:

  • AeroVironment proposes to offer $750 million in common stock and $600 million in convertible senior notes due 2030 to repay indebtedness and fund general corporate purposes.
  • The net proceeds from the offerings will be used to repay $1.35 billion in term loan and revolving credit facility borrowings, with any remaining funds allocated for increasing manufacturing capacity.
  • J.P. Morgan and BofA Securities will act as lead book-running managers for the Common Stock Offering and Convertible Notes Offering, respectively.
  • Raymond James will act as a joint book-running manager for the Convertible Notes Offering.
  • Auto Vironment has filed a registration statement and preliminary prospectus supplements with the Securities and Exchange Commission for the proposed offerings.
  • The Company expects the offerings to be completed subject to market and other conditions, and provides no assurance on the actual size or terms of the offerings.

Statistics:

  • $1.35 billion in term loan and revolving credit facility borrowings to be repaid with net proceeds from the offerings
  • $750 million in common stock to be offered
  • $600 million in aggregate principal amount of convertible senior notes due 2030 to be offered
  • 30-day option to purchase up to an additional $112.5 million worth of common stock
  • 30-day option to purchase up to $90 million in aggregate principal amount of convertible senior notes
  • Total value of offerings: $1.35 billion

Sources:

  • AeroVironment, Inc.'s press release (available at businesswire.com/news/home/20250630163480/en/)
  • AeroVironment, Inc.'s Annual Report on Form 10-K for the year ended April 30, 2025 (filed with the Securities and Exchange Commission)