Overview

• AeroVironment launched a $1.35 billion capital raise with $750 million in common stock and $600 million in convertible senior notes due 2030, granting underwriters options to add $112.5 million of stock and $90 million of notes
• The company intends to use net proceeds to repay its term loan and revolving credit facility and allocate remaining funds to expand manufacturing capacity for unmanned systems
• Shares fell about 8% to around $261 in early trading Tuesday as investors reacted to potential dilution and increased leverage
• The stock has surged roughly 85% year to date, boosting AeroVironment’s market value to about $13 billion following robust Q4 results and its $4.1 billion BlueHalo acquisition
• AeroVironment reported $40.9 million in cash and cash equivalents as of April 30, underscoring its drive to bolster liquidity