Taser maker Axon steadies after $1 bln convertible bond sale
AXON•Use of proceeds and recent stock move
AXON's stock on Tuesday dropped 9.8% to its lowest since June 26 after the company launched the offering to support growth and for potential investments and acquisitions.
It also intends to use about $100 million of the proceeds to pay the cost of capped calls; the cap price of $1,049.94 was set 137.5% above the stock's last close.
Goldman Sachs, Morgan Stanley, JPMorgan, RBC and Citigroup are joint bookrunners for the offering.
Through Tuesday, AXON stock was down 22% in September, matching its year-to-date loss. In comparison, the S&P 500 Industrials index (.SPLRCI) was off about 4% this month, leaving the index up 8.6% year to date.
The average rating of 22 analysts is "buy"; median price target is $700, according to LSEG.
Axon shares edge up after $1 billion convertible bond pricing
Shares of public safety tech firm Axon Enterprise (AXON.O) edged up 0.8% to $445.56 before the bell on Wednesday after the company clinched a capital raise.
The maker of Tasers, body cameras and drones early Wednesday announced pricing of a public offering of $1 billion of 0% convertible senior notes due Sept. 15, 2031.
The conversion price of $652.06 represents a 47.5% premium to the stock's last sale of $442.08 on Tuesday.
