Taser maker Axon drops after unveiling $1 bln convertible debt deal
AXON•Analyst view
Twenty of 22 analysts rate the stock "strong buy" or "buy," while two rate it "hold"; the median price target is $700, per LSEG.
Planned use of proceeds
The company intends to use net offering proceeds for general purposes, including to support growth and for potential investments and acquisitions.
It also plans to use some proceeds for capped calls, derivative transactions employed to help mitigate potential dilution.
Deal details and market context
Goldman Sachs, Morgan Stanley, JPMorgan, RBC and Citigroup are joint lead bookrunners for the offering.
Scottsdale, Arizona-based AXON has a market cap of roughly $40 billion.
At Monday's close, the stock was down about 14% year to date, lagging the roughly 9% advance in the S&P 500 Industrials .SPLRCI.
Axon shares fall after convertible offering announcement
Public safety tech firm Axon Enterprise's AXON.O shares were down 3.5% at $473 premarket as it looks to raise capital.
Maker of Tasers, body cameras and drones announces public offering of $1 billion 0% convertible bonds to mature Sept. 15, 2031.
